Prior Companys condensed financial statements provide the following information. Instructions (a) Determine the following for 2014. (1)

Prior Company’s condensed financial statements provide the following information.

Instructions
(a) Determine the following for 2014.
(1) Current ratio at December 31.
(2) Acid-test ratio at December 31.
(3) Accounts receivable turnover.
(4) Inventory turnover.
(5) Return on assets.
(6) Profit margin on sales.
(b) Prepare a brief evaluation of the financial condition of Prior Company and of the adequacy of itsprofits.

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PRIOR COMPANY BALANCE SHEET $ 52,000 198,000 current assets $773,000 Property, plant, and equipment (net) $1,630,000 $1,400,000 Common stockholders' equity Total liabilities and stockholders' equity $1,630,000 1,400,000 INCOME STATEMENT FOR THE YEAR ENDED 2014 Cost of goods sold Selling and administrative expenses Interest expense Net income $ 360.000