Selected comparative financial statement information of Bluegrass Corporation follows.

Required

1. Compute each year?s current ratio. (Round ratio amounts to one decimal.)

2. Express the income statement data in common-size percents. (Round percents to two decimals.)

3. Express the balance sheet data in trend percents with 2016 as the base year. (Round percents to two decimals.)

4. Comment on any significant relations revealed by the ratios and percents computed.

Transcribed Image Text:

BLUEGRASS CORPORATION Comparative Balance Sheets December 31, 2018, 2017, and 2016 2018 2016 2017 Assets $ 54,860 $ 36,300 Current assets...... $ 32,660 1,700 10,600 Long-term investments. Plant assets, net.... Total assets... Liabilities and Equity Current liabilities... Common stock ... 113.660 $167,670 $148,020 $125,900 112,810 79,000 $ 22,370 $ 19,180 $ 16,500 46,500 46,500 37,000 Other paid-in capital. 13,850 13,850 11,300 Retained eamings. Total liabilities and equity..... 84,950 $167,670 68,490 61,100 $148,020 $125,900 BLUEGRASS CORPORATION Comparative Income Statements For Years Ended December 31, 2018, 2017, and 2016 2018 2017 2016 Sales ... Cost of goods sold. Gross profit... Selling expenses... $198,800 $166,000 $143,800 108,890 86,175 66,200 89,910 79,825 77,600 22,680 19,790 18,000 Administrative expenses 16,760 14,610 15,700 33,700 Total expenses 39.440 50,470 34,400 Income before taxes.. 45,425 43,900 Income tax expense. 6,050 5,910 5,300 $ 38.600 Net income . $ 44,420 $ 39.515