Hood Company's condensed financial statements provide the following information.

Instructions
(a) Determine the following for 2008.
(1) Current ratio at December 31.
(2) Acid-test ratio at December 31.
(3) Accounts receivable turnover.
(4) Inventory turnover.
(5) Rate of return on assets.
(6) Profit margin on sales.
(b) Prepare a brief evaluation of the financial condition of Hood Company and of the adequacy of itsprofits.

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Hood Company Balance Sheet Dec. 31, 2008 Dec. 31, 2007 $52,000 198,000 80,000 440,000 3.000 $773,000 857,000 $1,630,000 $60,000 80,000 40,000 360,000 7,000 S547,000 853,000 $1,400,000 160,000 400,000 840,000 $1,400,000 Cash Accounts receivable (net) Marketable securities (short-term) Prepaid expenses Total current assets Property, plant, and equipment (net) Total assets Current liabilities Bonds payable Common stockholders' equity 240,000 400,000 990,000 $1,630,000 Total liabilities and stockholders equity Income Statement For the Year Ended December 31, 2008 Sales Cost of goods sold Gross profit Selling and administrative expense Interest expense Net income $1,640,000 (800,000) 840,000 (440,000) (40,000) S 360,000