The condensed financial statements of Eau Frache Company for the years 2009 and 2010 are presented below.

The condensed financial statements of Eau Fraîche Company for the years 2009 and 2010 are presented below.

Compute the following ratios for 2010 and 2009.

(a) Current ratio.

(b) Inventory turnover. (Inventory on 12/31/08 was $340.)

(c) Profit margin ratio.

(d) Return on assets. (Assets on 12/31/08 were $1,900.)

(e) Return on common stockholders’ equity. (Equity on 12/31/08 was $900.)

(f) Debt to total assets ratio.

(g) Times interest earned.

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EAU FRAÎCHE COMPANY Balance Sheets December 31 2009 2010 Current assets $ 330 $ 360 400 390 Cash and cash equivalents Accounts receivable (net) Inventories Prepaid expenses 470 460 120 160 Total current assets 1,380 420 1,310 380 Property, plant, and equipment Investments 10 10 Intangibles and other assets 530 510 Total assets $2,340 $2,210 $ 790 380 $ 900 Current liabilities Long-term liabilities Stockholders' equity–common Total liabilities and stockholders' equity 410 1,030 1,040 $2,340 $2,210 EAU FRAÎCHE COMPANY Income Statements For the Year Ended December 31 2010 2009 $3,800 $3,460 Revenues Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense Total costs and expenses 890 2,330 20 970 2,400 10 3,380 3,240 Income before income taxes 420 220 168 132 Income tax expense $ 252 Net income 8