The condensed financial statements of pharoah company for the years 2026 and 2027 are presented as follows. (amounts in the thousands). balance sheet 2027: current assets- cash and cash equivalents $330, accounts receivable (net) $490, inventory $580, prepaid expenses $120, total current assets $1520, investments $30, property plant & equipment (net) $420, intangible and other assets $530, total assets $2500, current liabilities $920, long term liabilities $530, stockholders' equity-common $1050, total liabilities and stockholders' equity $2500. balance sheet 2026: current assets- cash and cash equivalents $360, accounts receivable (net) $420, inventory $510, prepaid expenses $160, total current assets $1450, investments $30, property plant & equipment (net) $380, intangible and other assets $510, total assets $2370, current liabilities $810, long term liabilities $500, stockholders' equity-common $1060, total liabilities and stockholders' equity $2370. income statement 2027- net sales $3920, cost of goods sold $975, selling and administrative expenses $2400, interest expense $25, total expenses $3400, income before income taxes $520, income tax expense $156, net income $364. income statement 2026- net sales $3580, cost of goods sold $910, selling and administrative expenses $2330, interest expense $20, total expenses $3260, income before income taxes $320, income tax expense $96, net income $224.
compute the following ratios for 2027 and 2026.
a. current ratio
b. inventory turnover (inventory on 12/31/2025 was $440)
c. profit margin
d. return on assets (assets on 12/31/2025 were $2870)
e. return on common stockholders equity (stockholders equity-common on 12/31/2025 was $920)
f. debt to assets ratio
g. times interest earned
The condensed financial statements of pharoah company for the years 2026 and 2027 are presented as follows. (amounts in the thousands). balance sheet 2027: current assets- cash and cash equivalents $330, accounts receivable (net) $490, inventory $580, prepald expenses $120, total current assets $1520, investments $30, property plant \& equipment (net) $420, intangible and other assets $530, total assets $2500, current liabilities $920, long term liabilities $530, stockholders' equity-common $1050, total liabllities and stockholders' equity $2500, balance sheet 2026: current assets- cash and cash equivalents $360, accounts recelvable (net) $420, inventory $510, prepaid expenses $160, total current assets $1450, investments $30, property plant \& equipment (net) $380, intangible and other assets $510, total assets $2370, current liabilities $810, long term liabilities $500, stockholders' equity-common $1060, total liabilities and stockholders' equity $2370. Income statement 2027 - net sales $3920, cost of goods sold $975, selling and administrative expenses $2400, interest expense $25, total expenses $3400, income before income taxes $520, income tax expense $156, net income $364. income statement 2026 net sales $3580, cost of goods sold $910, selling and administrative expenses $2330, interest expense $20, total expenses $3260, income before income taxes $320, income tax expense $96, net income \$224
