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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