The condensed financial statements of Ness Company for the years 2016 and 2017 are presented below.

Compute the following ratios for 2017 and 2016.
(a) Current ratio.
(b) Inventory turnover. (Inventory on December 31, 2015, was $340.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
(e) Return on common stockholders' equity. (Equity on December 31, 2015, was $900.)
(f) Debt to assets ratio.
(g) Times interest earned.

Transcribed Image Text:

NESS COMPANY Balance Sheets December 31 (in thousands) 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses 330 470 460 130 1,390 410 360 400 390 160 Total current assets 1,310 380 10 510 $2,210 Property, plant, and equipment (net) Intangibles and other assets 530 $2,340 Total assets Current liabilities Long-term liabilities Stockholders' equity-common 820 480 1,040 $2,340 790 380 1,040 $2,210 Total liabilities and stockholders' equity NESS COMPANY Income Statements For the Year Ended December 31 (in thousands) 2017 $3,800 2016 $3,460 Sales revenue Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense 970 2,400 890 2,330 20 3,240 220 Total costs and expenses Income before income taxes Income tax expense Net income 3,380 420 168 252 132