129/2018 Chapter 14 Homework Analysis and Interpretation of Financial Statements QUESTION 1 Not complte Marked out of 2.00 Current Ratio The following financial data is from Hi-Tech Instruments' financial statements (thousands of dollars, except earnings per share.) 2016 Sales revenue 210,000 Cost of goods sold 125,000 8,300 2,600 Earnings per share 415 Net income Hi-Tech Instruments, Inc. Balance Sheet (Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015 $18,000 41,000 43,700 102,700 50,500 13,800 $167,000 Cash 14,300 Accounts recelvable (net) 39,500 95,800 52,600 15,600 164,000 Total current assets Plant assets (net) Other assets Total assets Liabilities and Stockholders Equity Notes payable-banks Accounts payable Accrued liabilities $6,000 22,500 16,500 $6,000 18,700 21,000 45,700 40,000 Total current liabilities 9% Bonds payable Total liabilities Common stock, $25 par value (2,000,000 shares) Retained earnings 77,000 50,000 37,000 87,000 85,700 31,300 Total stockholders equity 81,300 018 Chapter 14 Homework Analysis and Interpretation of Financial Statements Hi-Tech Instruments, Inc. Balance Sheet Thousands of Dollars Dec. 31, 2016 Dec. 31, 2015 Total liabilities and stockholders equity 164,000 $167,000 Industry Average Ratios for Competitors Quick ratico Current ratio Accounts receivable turnover 5.9 times Inventory turnover Debt-to-equity ratio Gross profit percentage 42.8 percent Return on sales Return on assets 1.3 2.4 3.5 times 0.73 45 percent 7.6 percent Calculate the company's current ratio for 2016 Round answer to one decimal place. Compare the result to the industry average Hi-Tech Instruments' ratio is higher than the industry average Hi-Tech Instruments' ratio is lower than the industry average. Check