From the information about Vargo Corporation in Figures 22.16 and 22.17, do the following:

Comparative Income Statement for Vargo Corporation

Comparative Balance Sheet for Vargo Corporation

(c) 2020 Current assets 63%

1. For each year calculate its current ratio and acid test ratio.

2. For each year prepare the income statement in common-size percentages. (Round to the nearest tenth of a percent.)

3. Prepare a trend analysis of the balance sheet using 2018 as the base year. (Round to the nearest percent.)

Transcribed Image Text:

VARGO CORPORATION COMPARATIVE INCOME STATEMENT FOR YEARS ENDED DECEMBER 31, 2020, 2019, 2018 2020 2019 2018 Net Sales $60 0 0000 $ 40 0 0 000 $ 50 olololoo Cost of Goods Sold 18 00000 1960000 20000 00 Gross Profit from Sales $ 42 00000 $ 20 40 000 $30 0 0 0 00 Operating Expenses: Selling $ 11500100 ||$ 250000| $ 210 이이00| General and Administrative 450000 100000 200000 Total Operating Expenses $ 61010000 || $ 35이이00|| $ 4100000| Operating Income Before Taxes $ 36|00000|| $ 169이 이00|| $26|이 이이 00 Income Taxes |기0000 $ 35 30000 $ 16 40000 $ 25 5 0000 50000 50000 Net Income