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 $ 352 $ 354 360 1.268 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 $2.203 $ 804 $ 912 360 1.070 1.041 $2.205 $2364 MURAWSKI COMPANY Income Statements For the Years Ended December 31 2020 2019 Sales revenue $3.830 53.770 Costs and expenses Cost of goods sold 908 Selling & administrative expenses 2315 Interest expense Total costs and expenses Income before income taxes Income tax expense Net income

Answer 1

Current Ratio Current Assets Current Liabilities 2020 1.58 to 1 1268 804 2019 1.56 1424 912 b Inventory Turnover Ratio Cost of Goods Sold Average Inventory Cost of Goods Sold (Beginning Bal + Ending Bal)/2 2020 2.27 times 908 (440 + 360)/2 2019 2.59 times 988 (322+440)/2 C Profit Margin Net Income Net Sales 2020 437 11.4% 3830 2019 7.7% 290 3770 d Return on Assets Net Income Average total assets 2020 19.1% 437 (2364+2205)/2 2019 13.6% 290 (1908+2364)/2 e Return common stockholders equity Net Income Average stockholders equity 2020 41.4% 437 (1070+1041)/2 2019 29.3% 290 (912+1070)/2 Debt to Assets Total Liabilities Total Assets 2020 0.5 804+360 2205 2019 912+382 2364 g Times Interest Earned Earning before Interest & Tax Interest Expense 2020 587+20 30.4 20 2019 361+19 20.0 19