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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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 15E
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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.
 
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: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
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
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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