Question: The condensed financial statements of Murawski
The condensed financial statements of Murawski Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.)
Compute the following ratios for 2017 and 2016.
(a) Current ratio.
(b) Inventory turnover. (Inventory on 12/31/15 was $340.)
(c) Profit margin.
(d) Return on assets. (Assets on 12/31/15 were $1,900.)
(e) Return on common stockholders’ equity. (Stockholders’ equity on 12/31/15 was $900.)
(f) Debt to assets ratio.
(g) Times interest earned.
Transcribed Image Text:
MURAWSKI COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) $ 330 $ 360 470 400 Inventory Prepaid expenses 460 390 120 160 Total current assets 1,380 1,310 Investments Property, plant, and equipment Intangibles and other assets 10 10 420 380 530 510 Total assets $2,340 $2,210 Current liabilities Long-term liabilities Stockholders' equity-common $ 900 $ 790 380 410 1,030 1,040 Total liabilities and Stockholders' equity $2,340 $2,210 MURAWSKI COMPANY Income Statements For the Years Ended December 31 2017 2016 Sales revenue $3,800 $3,460 Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense Total costs and expenses 955 890 2,400 2,330 25 20 3,380 3,240 Income before income taxes 420 220 Income tax expense 126 66 Net income $ 294 $ 154
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