The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows....

80.2K

Verified Solution

Question

Accounting

The condensed financial statements of Murawski Company for theyears 2019 and 2020 are presented follows. (Amounts inthousands.)

MURAWSKI COMPANY
Balance Sheets
December 31

2020

2019

Current assets
    Cash and cash equivalents$ 358$ 353
    Accounts receivable (net)388490
    Inventory388474
    Prepaid expenses170120
      Total current assets1,3041,437
Investments1312
Property, plant, and equipment390418
Intangibles and other assets492526
      Total assets$2,199$2,393
Current liabilities$ 800$ 884
Long-term liabilities354390
Stockholders’ equity—common1,0451,119
      Total liabilities andstockholders’ equity$2,199$2,393

MURAWSKI COMPANY
Income Statements
For the Years Ended December 31

2020

2019

Sales revenue$3,710$3,800
Costs and expenses
    Cost of goods sold896984
    Selling & administrativeexpenses2,3302,410
    Interest expense2522
      Total costs andexpenses3,2513,416
Income before income taxes459384
Income tax expense16081
Net income$ 299$ 303



Compute the following ratios for 2020 and 2019. (Roundcurrent ratio and invertory turnover ratio to 2 decimal places,e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g.1.6 or 1.6%.)

(a)Current ratio.
(b)Inventory turnover. (Inventory on 12/31/18 was $312.)
(c)Profit margin ratio.
(d)Return on assets. (Assets on 12/31/18 were $1,878.)
(e)Return on common stockholders’ equity. (Stockholders' equity on12/31/18 was $882.)
(f)Debt to assets ratio.
(g)Times interest earned.

Answer & Explanation Solved by verified expert
3.7 Ratings (634 Votes)
Answer of Part a For 2019 Current Ratio Current Assets Current Liabilities Current Ratio 1437 884 Current Ratio 163 For 2020 Current Ratio Current Assets Current Liabilities Current Ratio 1304 800 Current Ratio 163 Answer of Part b For 2019 Average Inventory    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students