The condensed financial statements of Eau Fraîche Company for the years 2010 and 2011 are presented below.
EAU FRAÎCHE COMPANY
Balance Sheets
December 31
|
2011 |
2010 |
|
|
Current assets |
||
|
Cash and cash equivalents |
330 |
360 |
|
Accounts receivable (net) |
470 |
400 |
|
Inventories |
460 |
390 |
|
Prepaid expenses |
120 |
160 |
|
Total current assets |
1,380 |
1,310 |
|
Property, plant, and equipment |
420 |
380 |
|
Investments |
10 |
10 |
|
Intangibles and other assets |
530 |
510 |
|
Total assets |
2,340 |
2,340 |
|
Current liabilities |
900 |
790 |
|
Long-term liabilities |
410 |
380 |
|
Stockholders’equity – common |
1,030 |
1,040 |
|
Total liabilities and stockholders’equity |
2,340 |
2,210 |
EAU FRAÎCHE COMPANY
Income Statement
For the Years Ended December 31
|
2011 |
2010 |
|
|
Revenues |
3,800 |
3,480 |
|
Costs and expenses |
||
|
Cost of goods sold |
970 |
890 |
|
Selling and administrative expenses |
2,400 |
2,330 |
|
Interest expense |
10 |
20 |
|
Total costs and expenses |
3,380 |
3,240 |
|
Income before income taxes |
420 |
220 |
|
Income tax expense |
168 |
132 |
|
Net income |
252 |
88 |
Compute the following ratios for 2010 and 2011. (Round current ratio and inventory turnover to 2 decimal places, e.g. 2.50. Round all other answers to 1 decimal place, e.g. 5.2.)