FINANCIAL STATEMENT ANALYSIS Agency Rent-A-Car, Inc., rents cars to customers whose vehicles are unavailable due to accident, theft, or repair (‘‘Wheels while your car heals’’). The company has a fleet of more than 40,000 cars located at 700 offices throughout the United States and Canada. Its balance sheets at January 31, 2009 and January 31, 2008, contain the following information (all dollar amounts are stated in thousands of dollars):

1/31/2009 1/31/2008 Assets Cash $ 4,400 $ 3,308 Accounts receivable 27,409 30,889 Supplies 6,864 7,440 Property and equipment 279,189 287,456 Other assets 15,666 14,441

$333,528 $343,534 Liabilities and Stockholders’ Equity Accounts payable $ 18,152 $ 33,184 Other noncurrent liabilities 157,861 163,062 Stockholders’ equity 157,515 147,288

$333,528 $343,534 Required:

What is the dollar amount of current assets and current liabilities at January 31, 2009? At January 31, 2008? What does this information tell you about the company’s liquidity?

Assume that stockholders were paid dividends of $1,200 during 2009 and that there were no other changes in stockholders’ equity except for net income. How much net income did the business earn during the year?

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