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.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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.
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
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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