Net sales Independent Auto Inc. Income Statement ($000) For Years Ended December 31 Cost of goods sold Gross profit from sales Selling expenses Administrative expenses Total operating expenses Profit before taxes Income taxes Profit 2023 $210,300 125,509 $ 84,791 2022 $193,500 119,775 $ 73,725 $ 29,722 $ 26,740 19,041 27,065 $ 48,763 $ 53,805 $ 36,028 6,888 2021 $168,300 106,503 $ 61,797 $ 22,271 13,939 $ 36,210 $ 25,587 $ 19,920 6,272 5,338 $ 29,140 $ 13,648 $ 20,249 Independent Auto Inc. Balance Sheet ($000) December 31 2023 2022 2021 Assets Current assets $ 35,486 $28,097 $37,004 Non-strategic investments 0 660 3,379 Plant and equipment, net 66,100 70,300 43,000 Total assets $101,586 $99,057 $83,383 Liabilities and Equity Current liabilities $ 14,915 $14,747 $14,411 Common shares 59,800 59,800 45,100 Retained earnings 26,871 24,510 23,872 Total liabilities and equity $101,586 $99,057 $83,383 Required: 1. Calculate each year's current ratio. (Round the final answers to 1 decimal place.) Current ratios December 31, 2023 to 1 December 31, 2022 to 1 December 31, 2021 I to 1

Net sales Independent Auto Inc. Income Statement ($000) For Years Ended December 31 Cost of goods sold Gross profit from sales Selling expenses Administrative expenses Total operating expenses Profit before taxes Income taxes Profit 2023 $210,300 125,509 $ 84,791 2022 $193,500 119,775 $ 73,725 $ 29,722 $ 26,740 19,041 27,065 $ 48,763 $ 53,805 $ 36,028 6,888 2021 $168,300 106,503 $ 61,797 $ 22,271 13,939 $ 36,210 $ 25,587 $ 19,920 6,272 5,338 $ 29,140 $ 13,648 $ 20,249 Independent Auto Inc. Balance Sheet ($000) December 31 2023 2022 2021 Assets Current assets $ 35,486 $28,097 $37,004 Non-strategic investments 0 660 3,379 Plant and equipment, net 66,100 70,300 43,000 Total assets $101,586 $99,057 $83,383 Liabilities and Equity Current liabilities $ 14,915 $14,747 $14,411 Common shares 59,800 59,800 45,100 Retained earnings 26,871 24,510 23,872 Total liabilities and equity $101,586 $99,057 $83,383 Required: 1. Calculate each year's current ratio. (Round the final answers to 1 decimal place.) Current ratios December 31, 2023 to 1 December 31, 2022 to 1 December 31, 2021 I to 1

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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