Question

Current Attempt in Progress

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

ORIOLE COMPANY Balance Sheets December 31
		2017		2016
Current assets
Cash and cash equivalents		$330		$360
Accounts receivable (net)		640		570
Inventory		540		470
Prepaid expenses		120		160
Total current assets		1,630		1,560
Investments		180		180
Property, plant, and equipment (net)		420		380
Intangibles and other assets		530		510
Total assets		$2,760		$2,630
Current liabilities		$1,070		$960
Long-term liabilities		490		460
Stockholders’ equity—common		1,200		1,210
Total liabilities and stockholders’ equity		$2,760		$2,630

ORIOLE COMPANY Income Statements For the Year Ended December 31
		2017		2016
Sales revenue		$3,880		$3,540
Costs and expenses
Cost of goods sold		1,125		1,060
Selling & administrative expenses		2,400		2,330
Interest expense		25		20
Total costs and expenses		3,550		3,410
Income before income taxes		330		130
Income tax expense		99		39
Net income		$ 231		$ 91

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 $360.)
(c)		Profit margin.
(d)		Return on assets. (Assets on 12/31/15, were $1,910.)
(e)		Return on common stockholders’ equity. (Stockholders’ equity on 12/31/15, was $920.)
(f)		Debt to assets ratio.
(g)		Times interest earned.

		2017			2016
Current ratio.		Enter a number rounded to 2 decimal places	:1		Enter a number rounded to 2 decimal places	:1
Inventory turnover.		Enter a number rounded to 2 decimal places			Enter a number rounded to 2 decimal places
Profit margin.		Enter percentages rounded to 1 decimal place	%		Enter percentages rounded to 1 decimal place	%
Return on assets.		Enter percentages rounded to 1 decimal place	%		Enter percentages rounded to 1 decimal place	%
Return on common stockholders’ equity.		Enter percentages rounded to 1 decimal place	%		Enter percentages rounded to 1 decimal place	%
Debt to assets ratio.		Enter percentages rounded to 1 decimal place	%		Enter percentages rounded to 1 decimal place	%
Times interest earned.		Enter a number rounded to 1 decimal place	times		Enter a number rounded to 1 decimal place	times

Answer 1