Question: Im having a hard time trying to compute 2026 return on common stockholders equity and 2027 and 2026 Times interest earned. SANDHILL COMPANY Balance Sheets



SANDHILL COMPANY Balance Sheets December 31 (in thousands) \begin{tabular}{|c|c|c|} \hline & 2027 & 2026 \\ \hline Current assets & & \\ \hline Cash and cash equivalents & $301 & $360 \\ \hline Accounts receivable (net) & 580 & 510 \\ \hline Inventory & 570 & 500 \\ \hline Prepaid expenses & 130 & 160 \\ \hline Total current assets & 1,581 & 1,530 \\ \hline Investments & 120 & 120 \\ \hline Property, plant, and equipment (net) & 439 & 380 \\ \hline Other assets & 530 & 510 \\ \hline Total assets & $2,670 & $2,540 \\ \hline Current liabilities & $930 & $900 \\ \hline Long-term liabilities & 590 & 490 \\ \hline Stockholders' equity-common & 1,150 & 1,150 \\ \hline Total liabilities and stockholders' equity & $2,670 & $2,540 \\ \hline \end{tabular} Compute the following ratios for 2027 and 2026. (Round current ratio and imentory turnover to 2 decimal places, es 1.83 and all other answers to 1 decimal place, es. 1.8 or 12.6% ) Compute the following ratios for 2027 and 2026. (Round current ratio and inventory turnover to 2 decimal places, es 1.83 and all other answers to 1 decimal ploce, es. 1.8 or 12.6% (a) Current ratio. (b) Imventory turnover. (Inventory on December 31, 2025, was \$450.) (c) Profitmargin. (d) Return on assets: (Assets on December 31, 2025, were \$2,360.) (e) Return on common stockholders' equity. (Stockholders' equity-common on December 31, 2025, was \$920.) (f) Debt to assets ratio. (g) Times interest earned. \begin{tabular}{|c|c|c|c|c|c|} \hline & & 2027 & & 2026 & \\ \hline (a) & Current ratio. & 17 & 11 & 1.7 & :1 \\ \hline (b) & Inventory turnover & 2 & times & 2 & times \\ \hline (c) & Profit margin & 6.6 & % & 4.5 & % \\ \hline (d) & Return on assets & 97 & % & 64 & % \\ \hline (e) & Return on common stockholders' equity. & 22.4 & % & 14.1 & % \\ \hline(f) & Debt to assets ratio & 57 & % & 54,7 & % \\ \hline (g) & Times interest earned & 43 & times & 13.5 & times \\ \hline \end{tabular} eTextbook and Media Assistance Used Sovefor Later Attempts: 6 of 10 used Submit
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