The condensed financial statements of Murawski Company for the years 2021 and 2022 are presented as follows.

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The condensed financial statements of Murawski Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.)

Murawski Company Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $ 330 $ 360 Accounts receivable (net) 470 400 Inventory 460 390 Prepaid expenses 160 120 Total current assets 1,380 1,310 Investments 10 10 Property, plant, and equipment 420 380 Intangibles and other assets 530 510

Compute the following ratios for 2022 and 2021.

a. Current ratio.

b. Inventory turnover. (Inventory on 12/31/20 was $340.)

c. Profit margin.

d. Return on assets. (Assets on 12/31/20 were $1,900.)

e. Return on common stockholders’ equity. (Stockholders’ equity on 12/31/20 was $900.)

f. Debt to assets ratio.

g. Times interest earned.

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Survey Of Accounting

ISBN: 9781119594536

2nd Edition

Authors: Paul D. Kimmel, Jerry J. Weygandt

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