0 Required information [The following information applies to the questions displayed below] The comparative financial statements for Chinook Company are below: Income statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income. Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity Year 2 $ 190,000 112,000 78,000 56,000 22,000 8,000 $ 14,000 Current ratio change $ 4,000 14,000 40,000 45,000 $ 103,000 $ 16,000 45,000 30,000 12,000 $ 103,000 2. By what amount did the current ratio change from Year 1 to Year 2? Note: Round your intermediate calculations and final answer to 2 decimal places. Year 1 $ 167,000 100,000 67,000 53,000 14,000 4,000 $ 10,000 $7,000 18,000 34,000 38,000 $ 97,000 $ 17,000 45,000 30,000 5,000 $ 97,000
0 Required information [The following information applies to the questions displayed below] The comparative financial statements for Chinook Company are below: Income statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income. Balance sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity Year 2 $ 190,000 112,000 78,000 56,000 22,000 8,000 $ 14,000 Current ratio change $ 4,000 14,000 40,000 45,000 $ 103,000 $ 16,000 45,000 30,000 12,000 $ 103,000 2. By what amount did the current ratio change from Year 1 to Year 2? Note: Round your intermediate calculations and final answer to 2 decimal places. Year 1 $ 167,000 100,000 67,000 53,000 14,000 4,000 $ 10,000 $7,000 18,000 34,000 38,000 $ 97,000 $ 17,000 45,000 30,000 5,000 $ 97,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[The following information applies to the questions displayed below.]
The comparative financial statements for Chinook Company are below:
Income statement
Sales revenue
Cost of goods sold
Gross profit
Operating expenses and interest expense
Pretax income
Income tax
Net income
Balance sheet
Cash
Accounts receivable (net).
Inventory
Property and equipment (net))
Total assets
Current liabilities (no interest)
Long-term liabilities (interest rate: 10%)
Common stock ($5 par value, 6,000 shares outstanding)
Retained earnings
Total liabilities and stockholders' equity
Year 2
$ 190,000
112,000
78,000
56,000
Current ratio change
22,000
8,000
$ 14,000
$ 4,000
14,000
40,000
45,000
$ 103,000
$ 16,000
45,000
30,000
12,000
$ 103,000
2. By what amount did the current ratio change from Year 1 to Year 2?
Note: Round your intermediate calculations and final answer to 2 decimal places.
Year 1
$ 167,000
100,000
67,000
53,000
14,000
4,000
$ 10,000
$ 7,000
18,000
34,000
38,000
$ 97,000
$ 17,000
45,000
30,000
5,000
$ 97,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd15ba5ab-7855-4b13-b619-457149c47fb3%2F6a962c0f-2f00-4ea6-9e35-24f7bff14a59%2Fgrxycrs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
The comparative financial statements for Chinook Company are below:
Income statement
Sales revenue
Cost of goods sold
Gross profit
Operating expenses and interest expense
Pretax income
Income tax
Net income
Balance sheet
Cash
Accounts receivable (net).
Inventory
Property and equipment (net))
Total assets
Current liabilities (no interest)
Long-term liabilities (interest rate: 10%)
Common stock ($5 par value, 6,000 shares outstanding)
Retained earnings
Total liabilities and stockholders' equity
Year 2
$ 190,000
112,000
78,000
56,000
Current ratio change
22,000
8,000
$ 14,000
$ 4,000
14,000
40,000
45,000
$ 103,000
$ 16,000
45,000
30,000
12,000
$ 103,000
2. By what amount did the current ratio change from Year 1 to Year 2?
Note: Round your intermediate calculations and final answer to 2 decimal places.
Year 1
$ 167,000
100,000
67,000
53,000
14,000
4,000
$ 10,000
$ 7,000
18,000
34,000
38,000
$ 97,000
$ 17,000
45,000
30,000
5,000
$ 97,000
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