Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year: 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 $1,950,000 Current liabilities $210,000 $180,000 Total stockholders' equity $1,290,000 $770,000 Net sales $4,800,000 $3,900,000 Cost of Goods Sold $3,200,000 $2,690,000 Wages expense $973,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $520,000 $250,000 All sales are made on account. Calculate the current ratio for 20X2. (Round your answer to 2 decimal places. Example 5.80)
Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year: 12/31/X2 12/31/X1 Current assets $430,000 $220,000 Total assets $2,500,000 $1,950,000 Current liabilities $210,000 $180,000 Total stockholders' equity $1,290,000 $770,000 Net sales $4,800,000 $3,900,000 Cost of Goods Sold $3,200,000 $2,690,000 Wages expense $973,000 $869,000 Supplies expense $60,000 $50,000 Depreciation expense $35,000 $32,000 Interest expense $12,000 $9,000 Net income $520,000 $250,000 All sales are made on account. Calculate the current ratio for 20X2. (Round your answer to 2 decimal places. Example 5.80)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:QUESTION 25
Presented below is selected data from the financial statements of Morgan Corporation for the current and prior year:
12/31/X2
12/31/X1
Current assets
$430,000
$220,000
Total assets
$2,500,000
$1,950,000
Current liabilities
$210,000
$180,000
Total stockholders' equity
$1,290,000
$770,000
Net sales
$4,800,000
$3,900,000
Cost of Goods Sold
$3,200,000
$2,690,000
Wages expense
$973,000
$869,000
Supplies expense
$60,000
$50,000
Depreciation expense
$35,000
$32,000
Interest expense
$12,000
$9,000
Net income
$520,000
$250,000
All sales are made on account. Calculate the current ratio for 20X2. (Round your answer to 2 decimal places. Example 5.80)
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