The condensed financial statements of Carla Vista Co. for the years 2021 and 2022 are presented below. CARLA VISTA CO. Balance Sheets December 31 (in thousands) 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 590 520
The condensed financial statements of Carla Vista Co. for the years 2021 and 2022 are presented below.
CARLA VISTA CO.
Balance Sheets
December 31 (in thousands)
2022
2021
Current assets
Cash and cash equivalents
$330
$360
590
520
Inventory
640
570
Prepaid expenses
130
160
Total current assets
1,690
1,610
Property, plant, and equipment (net)
410
380
Investments
130
130
Intangibles and other assets
530
510
Total assets
$2,760
$2,630
Current liabilities
$940
$910
Long-term liabilities
660
560
1,160
1,160
Total liabilities and stockholders’ equity
$2,760
$2,630
CARLA VISTA CO.
Income Statements
For the Year Ended December 31 (in thousands)
2022
2021
Sales revenue
$3,980
$3,640
Costs and expenses
Cost of goods sold
1,090
1,010
Selling & administrative expenses
2,400
2,330
Interest expense
10
20
Total costs and expenses
3,500
3,360
Income before income taxes
480
280
Income tax expense
192
112
Net income
$ 288
$ 168
Compute the following ratios for 2022 and 2021. (Round
(a) Current ratio.
(b) Inventory turnover. (Inventory on December 31, 2020, was $360.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2020, were $2,450.)
(e) Return on common stockholders’ equity. (Equity on December 31, 2020, was $970.)
(f) Debt to assets ratio.
(g) Times interest earned.
2022
2021
Current ratio.
enter the ratio rounded to 2 decimal places
:1
enter the ratio rounded to 2 decimal places
:1
Inventory turnover.
enter inventory turnover rounded to 2 decimal places
enter inventory turnover rounded to 2 decimal places
Profit margin.
enter percentages rounded to 1 decimal place
%
enter percentages rounded to 1 decimal place
%
Return on assets.
enter percentages rounded to 1 decimal place
%
enter percentages rounded to 1 decimal place
%
Return on common stockholders’ equity.
enter percentages rounded to 1 decimal place
%
enter percentages rounded to 1 decimal place
%
Debt to assets ratio.
enter percentages rounded to 1 decimal place
%
enter percentages rounded to 1 decimal place
%
Times interest earned.
enter times interest earned rounded to 1 decimal place
times
enter times interest earned rounded to 1 decimal place
times
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