Exercise 13-13 The condensed financial statements of Oriole Company for the year

Question

Exercise 13-13 The condensed financial statements of Oriole Company for the years 2016 and 2017 are presented below ORIOLE COMPANY Balance Sheets 31 (in thousands) 2017 2016 Current assets $330 $360 Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses 590 510 130 160 Total current assets 1,630 1,550 410 200 530 Property, plant, and equipment (net) 200 510 $2,770 $2,640 $980 430 1,230 $2,770 $2,640 Intangibles and other assets Total assets Current liabilities $1,010 Long-term liabilities 1,230 Total liabilities and stockholders' equity ORIOLE COMPANY For the Year Ended December 31 (in thousands) 2017 2016 Sales revenue $3,850 $3,510 Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense 1,160 2,400 10 3,570 1,080 2,330 20 3,430 Total costs and expenses Income before income taxes Income tax expense Net income 112 32 s 168 $ 48 Compute the following ratios for 2017 and 2016. (Round current ratio and inventory turnover to 2 decimal places, e.g 1. (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2015, was $400.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2015, were $2,300.) (e) Return on common stockholders' equity. (Equity on December 31, 2015, was $950.) (f) Debt to assets ratio (g) Times interest earned

Explanation / Answer

a.a) 1.6, 1.5 b.a) 512.6, 442.7 c.a) 3819.8. ,3479.23 fa) 2.2 , 3.3 ga) 28, 4.

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