Required Information P13-5 (Algo) Computing Differences and Comparing Financial Statements Using Percentages LO 13-3. 13-6 [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: 9%) Common stock ($5 par value, 5,400 shares outstanding) Retained earnings Total liabilities and stockholders' equity P13-5 Part 2 $ 190,500 112,300 78,200 Year 2 Year 1 $ 168,900 101,300 67,600 54,200 13,408 4,020 $ 9,388 $ 6,800 57,200 21,000 6,300 $ 14,700 $ 5,400 15,100 48,900 45,700 $ 107,100 $ 14,200 44,100 27,000 21,800 $ 107,100 16,900 33,700 36,700 $ 94,100 $ 15,200 44,100 27,000 7,800 $ 94,100 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. Current ratio change

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 48CE
icon
Related questions
Question
Required Information
P13-5 (Algo) Computing Differences and Comparing Financial Statements Using Percentages LO 13-3.
13-6
[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: 9%)
Common stock ($5 par value, 5,400 shares outstanding)
Retained earnings
Total liabilities and stockholders' equity
P13-5 Part 2
$ 190,500
112,300
78,200
Year 2
Year 1
$ 168,900
101,300
67,600
54,200
13,408
4,020
$ 9,388
$ 6,800
57,200
21,000
6,300
$ 14,700
$ 5,400
15,100
48,900
45,700
$ 107,100
$ 14,200
44,100
27,000
21,800
$ 107,100
16,900
33,700
36,700
$ 94,100
$ 15,200
44,100
27,000
7,800
$ 94,100
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.
Current ratio change
Transcribed Image Text:Required Information P13-5 (Algo) Computing Differences and Comparing Financial Statements Using Percentages LO 13-3. 13-6 [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: 9%) Common stock ($5 par value, 5,400 shares outstanding) Retained earnings Total liabilities and stockholders' equity P13-5 Part 2 $ 190,500 112,300 78,200 Year 2 Year 1 $ 168,900 101,300 67,600 54,200 13,408 4,020 $ 9,388 $ 6,800 57,200 21,000 6,300 $ 14,700 $ 5,400 15,100 48,900 45,700 $ 107,100 $ 14,200 44,100 27,000 21,800 $ 107,100 16,900 33,700 36,700 $ 94,100 $ 15,200 44,100 27,000 7,800 $ 94,100 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. Current ratio change
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781305084087
Author:
Cathy J. Scott
Publisher:
Cengage Learning
College Accounting (Book Only): A Career Approach
College Accounting (Book Only): A Career Approach
Accounting
ISBN:
9781337280570
Author:
Scott, Cathy J.
Publisher:
South-Western College Pub
Financial Accounting: The Impact on Decision Make…
Financial Accounting: The Impact on Decision Make…
Accounting
ISBN:
9781305654174
Author:
Gary A. Porter, Curtis L. Norton
Publisher:
Cengage Learning
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Managerial Accounting: The Cornerstone of Busines…
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning