Solution-By what amount did the current ratio change

By what amount did the current ratio change

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Reference no: EM132438974

Question - The comparative financial statements for Prince Company are below:

	Year 2	Year 1
Income statement:
Sales revenue	$191,900	$168,400
Cost of goods sold	113,800	100,400
Gross profit	78,100	68,000
Operating expenses and interest expense	57,400	54,400
Pretax income	20,700	13,600
Income tax	6,210	4,080
Net income	$14,490	$9,520
Balance sheet:
Cash	$5,300	$5,400
Accounts receivable (net)	14,600	16,100
Inventory	40,300	33,300
Property and equipment (net)	45,800	37,400
Total assets	$106,000	$92,200
Current liabilities (no interest)	$14,700	$15,700
Long-term liabilities (10 interest)	44,000	44,000
Common stock ($5 par value, 5,900 shares outstanding)	29,500	29,500
Retained earnings	17,800	3,000
Total liabilities and stockholders' equity	$106,000	$92,200

Required - By what amount did the current ratio change from Year 1 to Year 2?

Reference no: EM132438974

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By what amount did the current ratio change : Question - The comparative financial statements for Prince Company are below: By what amount did the current ratio change from Year 1 to Year 2

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By what amount did the current ratio change

Reference no: EM132438974

Reference no: EM132438974

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