EAN Company’s condensed financial statements provide the following information (amounts in thousands).

Instructions

(a) Determine the following for 2015.
(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 EAN Company and of the adequacy of its profits.

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EAN COMPANY STATEMENT OF FINANCIAL POSITION Dec. 31, 2015 Dec. 31, 2014 Property, plant, and equipment Current assets Inventory 897,000 853,000 440,000 360,000 Prepaid expenses 3,000 7,000 Accounts receivable 158,000 80,000 Short-term investments 80,000 40,000 Cash 52,000 733,000 60,000 547,000 Total assets 1,630,000 1,400,000 990,000 840,000 Equity Bonds payable Current liabilities 400,000 240,000 1,630,000 400,000 160,000 1,400,000