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The condensed statements of Independent Auto Inc. follow:     Independent Auto Inc. Income Statement ($000) For Years Ended December 31  2023   2022   2021 Net sales $ 209,500  $ 192,700  $ 167,500  Cost of goods sold 125,309       119,575       106,303  Gross profit from sales $ 84,191  $ 73,125  $ 61,197  Selling expenses $ 29,602  $ 26,620  $ 22,151  Administrative expenses 18,961       26,985       13,859  Total operating expenses $ 48,563  $ 53,605  $ 36,010  Profit before taxes $ 35,628  $ 19,520  $ 25,187  Income taxes 6,768       6,152       5,218  Profit $ 28,860  $ 13,368  $ 19,969      Independent Auto Inc. Balance Sheet ($000) December 31  2023   2022   2021 Assets Current assets $ 35,086  $ 27,697  $ 36,604  Non-strategic investments 0       580       3,179  Plant and equipment, net 65,300       69,500       42,200  Total assets $ 100,386  $ 97,777  $ 81,983  Liabilities and Equity Current liabilities $ 14,715  $ 14,547  $ 14,211  Common shares 59,000       59,000       44,300  Retained earnings 26,671       24,230       23,472  Total liabilities and equity $ 100,386  $ 97,777  $ 81,983    Required: 1. Calculate each year’s current ratio. (Round the final answers to 1 decimal place.)

The condensed statements of Independent Auto Inc. follow:     Independent Auto Inc. Income Statement ($000) For Years Ended December 31  2023   2022   2021 Net sales $ 209,500  $ 192,700  $ 167,500  Cost of goods sold 125,309       119,575       106,303  Gross profit from sales $ 84,191  $ 73,125  $ 61,197  Selling expenses $ 29,602  $ 26,620  $ 22,151  Administrative expenses 18,961       26,985       13,859  Total operating expenses $ 48,563  $ 53,605  $ 36,010  Profit before taxes $ 35,628  $ 19,520  $ 25,187  Income taxes 6,768       6,152       5,218  Profit $ 28,860  $ 13,368  $ 19,969      Independent Auto Inc. Balance Sheet ($000) December 31  2023   2022   2021 Assets Current assets $ 35,086  $ 27,697  $ 36,604  Non-strategic investments 0       580       3,179  Plant and equipment, net 65,300       69,500       42,200  Total assets $ 100,386  $ 97,777  $ 81,983  Liabilities and Equity Current liabilities $ 14,715  $ 14,547  $ 14,211  Common shares 59,000       59,000       44,300  Retained earnings 26,671       24,230       23,472  Total liabilities and equity $ 100,386  $ 97,777  $ 81,983    Required: 1. Calculate each year’s current ratio. (Round the final answers to 1 decimal place.)

FINANCIAL ACCOUNTING
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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The condensed statements of Independent Auto Inc. follow:
 
 
Independent Auto Inc.
Income Statement ($000)
For Years Ended December 31
 2023   2022   2021
Net sales $ 209,500  $ 192,700  $ 167,500 
Cost of goods sold 125,309       119,575       106,303 
Gross profit from sales $ 84,191  $ 73,125  $ 61,197 
Selling expenses $ 29,602  $ 26,620  $ 22,151 
Administrative expenses 18,961       26,985       13,859 
Total operating expenses $ 48,563  $ 53,605  $ 36,010 
Profit before taxes $ 35,628  $ 19,520  $ 25,187 
Income taxes 6,768       6,152       5,218 
Profit $ 28,860  $ 13,368  $ 19,969 
 
 
Independent Auto Inc.
Balance Sheet ($000)
December 31
 2023   2022   2021
Assets
Current assets $ 35,086  $ 27,697  $ 36,604 
Non-strategic investments 0       580       3,179 
Plant and equipment, net 65,300       69,500       42,200 
Total assets $ 100,386  $ 97,777  $ 81,983 
Liabilities and Equity
Current liabilities $ 14,715  $ 14,547  $ 14,211 
Common shares 59,000       59,000       44,300 
Retained earnings 26,671       24,230       23,472 
Total liabilities and equity $ 100,386  $ 97,777  $ 81,983 
 
Required:
1. Calculate each year’s current ratio. (Round the final answers to 1 decimal place.) 
 
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