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What insight does this give you into the company financial

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Reference no: EM131136061

Determine the current ratio for the construction company in Figures 6-1 and 6-2. 

Figures 6-1 WEST MOUNTAIN CONSTRUCTION

BALANCE SHEET

 

Figures 6-2 WEST MOUNTAIN CONSTRUCTION

INCOME STATEMENT

REVENUES ................ 789,839

CONSTRUCTION COSTS

aterials ................. 92,214

abor ................... 199,690

ubcontract ................ 401,948

Equipment ................. 20,833

Other ................... 1,352

Total Construction Costs .......... 716,037

EQUIPMENT COSTS

Rent and Lease Payments .......... 3,773

Depreciation ................ 6,673

Repairs and Maintenance ........... 2,734

Fuel and Lubrication ............ 7,289

Taxes, Licenses, and Insurance ....... 364

Equipment Costs Charged to Jobs ...... 20,833

Total Equipment Costs ........... 0

GROSS PROFIT .............. 73,802

OVERHEAD .............. 53,827

NET PROFIT FROM OPERATIONS .... 19,975

OTHER INCOME AND EXPENSE ...... 1,162

PROFIT BEFORE TAXES ......... 21,137

INCOME TAX .............. 3,921

PROFIT AFTER TAXES .......... 17,216

What insight does this give you into the company's financialoperations?

Reference no: EM131136061

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