Question

The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands.) MURAWSKI COMPANY Balance Sheets December 31 2020 2019 $ 367 472 472 122 1,433 15 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $ 378 382 400 160 1,320 14 350 480 $2,164 $ 772 388 1,004 $2,164 394 540 $2,382 $ 898 404 1,080 $2,382 MURAWSKI COMPANY Income Statements For the Years Ended December 31 2020 2019

Answer 1

MURAWSKI COMPANY
		2020	2019
a	Current Ratio
	Current Assets/ Current Liabiities	1320/772	1433/898
		1.71	1.60
b	Inventory Turn Over
	Cost of Goods Sold/Average Inventory	904/((400+472)/2)	976/((311+472)/2)
		2.1	2.5
c	Profit Margin Ratio
	Net income/Sales	368/3790	351/3820
		0.1	0.1
d	Return on Assets
	Net income/Average Total assets	368/((2164+2382)/2)	351/((2382+1906)/2)
		0.2	0.2
e	Return on common stockholders' equity
	Net income/ Average Common stockholders equity	368/((1004+1080)/2)	351/((1080+896)/2)
		0.4	0.4
f	Debt to assets ratio
	(Current Liabiities + Long term liabilities)/Total assets	(772+388)/2164	(898+404)/2382
		0.5	0.5
g	Times interest earned
	Income before income taxes/ interest expenses	516/25	426/26
		20.6	16.4