Question

The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) IVANHOE COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 550 Inventory 530 460 Prepaid expenses 160 120 1,530 Total current assets 1,460 Investments Property, plant, and equipment (net) Intangibles and other assets Total assets 420 380 530 510 $2,570 $2,440 $980 $870 480 450 1,110 1,120 Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $2,570 $2,440

Answer 1

Current Ratio in 2017 :: Current Ratio is = Total current assets/Total current liabilities Current Ratio is = (1530/980) Current Ratio is = 1.56 Times Inventory turnover for 2016 :: Inventory turnover is = Cost of goods sold/Average Inventory Inventory turnover is = (970/(460400)/2) Inventory turnover is = (970/430) Inventory turnover is = 2.26 Times Profit margin for 2017 - Profit margin is = (Net Income/Sales Revenue)*100 Profit margin is = (287/3870)*100 Profit margin is = 7.42% Profit margin is - 7.4% Return on assets for 2016 - Return on assets is = (Net Income/Average total assets)*100 Return on assets is = (147/(1980+2440)/2)*100 Return on assets is = (147/2210)*100 Return on assets is = 6.65% Return on assets is = 6.7% Return on common stockholders equity for 2016 - Return on common stockholders equity = (Net Income/Average common stockholders equity)*100 Return on common stockholders equity = (147/(970+1120)/2)*100 Return on common stockholders equity = (147/1045)*100 Return on common stockholders equity = 14.07% Return on common stockholders equity - 14.1% Answered more than 3 subpart