Compute the following ratios for 2025 and 2024. a. Currentratio b. Inventory turnover. (Inventory on December 31,2023 , was$400.) c. Profit margin. d. Return on assets. (Assets on December 31, 2023, were$2,300.) e. Return on common stockholders' equity. (Stockholders' equity-common on December 31,2023, was$950.) f. Debt to assets ratio. g. Times interest earned.
Compute the following ratios for 2025 and 2024. a. Currentratio b. Inventory turnover. (Inventory on December 31,2023 , was$400.) c. Profit margin. d. Return on assets. (Assets on December 31, 2023, were$2,300.) e. Return on common stockholders' equity. (Stockholders' equity-common on December 31,2023, was$950.) f. Debt to assets ratio. g. Times interest earned.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Compute the following ratios for 2025 and 2024.
a. Currentratio
b. Inventory turnover. (Inventory on December 31,2023 , was$400.)
c. Profit margin.
d. Return on assets. (Assets on December 31, 2023, were$2,300.)
e. Return on common stockholders' equity . (Stockholders' equity-common on December 31,2023, was$950.)
f. Debt to assets ratio.
g. Times interest earned.
Transcribed Image Text:The condensed financial statements of Oriole Company for the years 2024 and 2025 are as follows.
Oriole Company
Balance Sheets
December 31 (in thousands)
Current assets
Cash and cash equivalents
Accounts receivable (net)
Inventory
Prepaid expenses
Total current assets
Investments
Property, plant, and equipment (net)
Other assets
Total assets
Current liabilities
Long-term liabilities
Stockholders' equity-common:
Total liabilities and stockholders' equity
2025
$330
660
510
130
1,630
200
410
530
$2.770
$1,010
530
1,230
$2,770
2024
$360
590
440
160
1,550
200
380
510
$2,640
$980
430
1,230
$2,640
Transcribed Image Text:Oriole Company
Income Statements
For the Year Ended December 31 (in thousands)
Net sales
Expenses
Cost of goods sold
Selling and administrative expenses
Interest expense
Total expenses
Income before income taxes
Income tax expense
Net income
2025
$3,850
1,160
2,400
10
,570
280
112
$168
2024
$3,510
1,080
2,330
20
3,430
80
32
$48
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