Evaluting return on common stockholders equity

Reference no: EM131781066

Question: The condensed financial statements of Elliott Company for the years 2013 and 2014 are presented below. ELLIOTT COMPANY Balance Sheets December 31 (in thousands) 2014 2013 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 560 490 Inventory 618 548 Prepaid expenses 130 160 Total current assets 1,638 1,558 Property, plant, and equipment (net) 410 380 Investments 100 100 Intangibles and other assets 530 510 Total assets $2,678 $2,548 Current liabilities $910 $880 Long-term liabilities 638 538 Stockholders' equity-common 1,130 1,130 Total liabilities and stockholders' equity $2,678 $2,548 ELLIOTT COMPANY Income Statements For the Year Ended December 31 (in thousands) 2014 2013 Sales revenue $3,958 $3,618 Costs and expenses Cost of goods sold 1,060 980 Selling & administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,470 3,330 Income before income taxes 488 288 Income tax expense 195 115 Net income $ 293 $ 173 Compute the following ratios for 2014 and 2013. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(a) Current ratio.

(b) Inventory turnover. (Inventory on December 31, 2012, was $390.)

(d) Return on assets. (Assets on December 31, 2012, were $2,290.)

(e) Return on common stockholders' equity. (Equity on December 31, 2012, was $930.)

(f) Debt to assets ratio.

(g) Times interest earned.

2014 2013 Current ratio. :1 :1 Inventory turnover. Profit margin. % % Return on assets. % % Return on common stockholders' equity. % % Debt to assets ratio. % % Times interest earned. times times Click if you would like to Show Work for this question: Open Show Work

Reference no: EM131781066

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