Question: Your answer is partially correct. Try again. The condensed financial statements of Sheridan Company for the years 2016 and 2017 are presented as follows. (Amounts

Your answer is partially correct. Try again.

The condensed financial statements of Sheridan Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.)

SHERIDAN COMPANY Balance Sheets December 31

2017

2016

Current assets
Cash and cash equivalents

$330

$360

Accounts receivable (net)

660

590

Inventory

660

590

Prepaid expenses

120

160

Total current assets

1,770

1,700

Investments

200

200

Property, plant, and equipment (net)

420

380

Intangibles and other assets

530

510

Total assets

$2,920

$2,790

Current liabilities

$1,090

$980

Long-term liabilities

610

580

Stockholders equitycommon

1,220

1,230

Total liabilities and stockholders equity

$2,920

$2,790

SHERIDAN COMPANY Income Statements For the Year Ended December 31

2017

2016

Sales revenue

$4,000

$3,660

Costs and expenses
Cost of goods sold

1,145

1,080

Selling & administrative expenses

2,400

2,330

Interest expense

25

20

Total costs and expenses

3,570

3,430

Income before income taxes

430

230

Income tax expense

129

69

Net income

$ 301

$ 161

Compute the following ratios for 2017 and 2016. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.)

(a) Current ratio.
(b) Inventory turnover. (Inventory on 12/31/15 was $410.)
(c) Profit margin.
(d) Return on assets. (Assets on 12/31/15 were $2,230.)
(e) Return on common stockholders equity. (Stockholders equity on 12/31/15 was $980.)
(f) Debt to assets ratio.
(g) Times interest earned.

2017

2016

Current ratio.

:1

:1
Inventory turnover.

times

times
Profit margin.

%

%
Return on assets.

%

%
Return on common stockholders equity.

%

%
Debt to assets ratio.

%

%
Times interest earned.

times

times

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