The condensed financial statements of Sandhill Company for the years 2026 and 2027 are presented...
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The condensed financial statements of Sandhill Company for the years 2026 and 2027 are presented as follows. (Amounts in thousands.) Current assets Cash and cash equivalents SANDHILL COMPANY Balance Sheets December 31 Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment (net) Intangibles and other assets Total assets 2027 $330 550 500 120 1,500 90 420 530 $2,540 2026 $360 480 430 160 1,430 90 380 510 $2,410
Compute the following ratios for 2027 and 2026. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/25 was $380.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/25 were $2,690.) (e) Return on common stockholders' equity. (Stockholders' equity-common on 12/31/25 was \$920.) (f) Debt to assets ratio. (g) Times interest earned. \begin{tabular}{lrrr} Inventory & 500 & 430 \\ Prepaid expenses & 120 & 160 \\ Total current assets & 1,500 & 1,430 \\ Investments & 90 & 90 \\ Property, plant, and equipment (net) & 420 & 380 \\ Intangibles and other assets & 530 & & 510 \\ \hline Total assets & $2,540 & $2,410 \\ Current liabilities & $980 & & $870 \\ Long-term liabilities & 450 & & 420 \\ Stockholders' equity-common & 1,110 & & 1,120 \\ \hline Total liabilities and stockholders' equity & $2,540 & & $2,410 \\ \hline \end{tabular} 2027 2026 Current ratio Inventory turnover Profit margin Return on assets Return on common stockholders' equity Debt to assets ratio Times interest earned 1.53:1 595 times 7.0% % % % times 1.63:1 times %% times eTextbook and Media Compute the following ratios for 2027 and 2026. (Round current ratio and inventory turnover to 2 decimal places, e.g. 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.)
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