The condensed statements of Independent Auto Inc. follow:

Required

Rounding calculations to two decimal places:

1. Calculate each year?s current ratio.

2. Express the income statement data in common-size percentages.

3. Express the balance sheet data in trend percentages with 2018 as the base year.

Analysis Component: Comment on any significant relationships revealed by the ratios and percentages.

Transcribed Image Text:

Independent Auto Inc. Income Statement ($000) For Years Ended December 31 Independent Auto Inc. Balance Sheet ($000) December 31 2020 2019 2018 2020 2019 2018 $208,600 $191,800 $166,600 Net sales. Assets Cost of goods sold. 125,084 119,350 106,078 $34,636 $27,247 $36,154 Current assets. Gross profit from sales Non-strategic investments. 490 2,954 $ 83,516 $ 72,450 $ 60,522 $ 29,467 $ 26,485 $ 22,016 Plant and equipment, Selling expenses. 64,400 68,600 41,300 net. Administrative Total assets. $99,036 $96,337 $80,408 expenses. Total operating 18,871 26,895 13,769 Liabilities and Equity Current liabilities. $14,490 $14,322 $13,986 $ 48,338 $ 53,380 $ 35,785 $ 35,178 $ 19,070 $ 24,737 expenses.. Common shares 58,100 58,100 43,400 Profit before taxes Retained earnings. 26,446 23,915 23,022 6,633 5,083 Income taxes 6,017 Total liabilities and $ 28,545 $ 13,053 $ 19,654 Profit. $99,036 $96,337 $80,408 equity .