14. Determine the accounts payable to revenues ratio for the commercial construction company in Figures 6-1 and 6-2. What insight does this give you into the company's financial operations? WEST MOUNTAIN CONSTRUCTION BALANCE SHEET Current Year Last Year ASSETS 32,387.00 74,526.00 6,888.00 34,826.00 38,212.00 4,235.00 CURRENT ASSETS Cash Accounts Receivable-Walle Accounts Receivable-Retention Inventory Costs and Profits in Excess of Billings Notes Receivable Prepaid Expenses Other Current Assets Total Current Assets 4,549.00 9,177.00 3,139.00 735.00 3,114.00 129,966.00 1,061.00 1,119.00 84,002.00 FIXED AND OTHER ASSETS Construction Equipment Trucks and autos Office Equipment Total Fixed Assets Less Acc. Depreciation Net Fixed Assets Other Assets Total Assets 39,229.00 8,981.00 8,057.00 56,267.00 46,562.00 9,705.00 45,996.00 185,667.00 39,229.00 8,981.00 8,057.00 56,267.00 39,889.00 16,378.00 50,462.00 150,842.00 LIABILITIES CURRENT LIABILITIES Accounts Payable-Trade Accounts Payable-Retention Billings in Excess of Costs and Profits Notes Payable Accrued Payables Accrued Taxes Accrued Vacation Other Current Liabilities Total Current Liabilities Long-Term Liabilities Total Liabilities 38,682.00 3,768.00 1,424.00 4,022.00 4,574.00 2,718.00 606.00 6,605.00 62,399.00 61,544.00 123,943.00 35,772.00 3,536.00 2,022.00 5,791.00 2,254.00 2,405.00 308.00 5,330.00 57,418.00 48,916.00 106,334.00 Total Liabilities and Equity 185,6b7.00 IJU,642.00 WEST MOUNTAIN CONSTRUCTION INCOME STATEMENT REVENUES 789,839.00 100.0% 1 CONSTRUCTION COSTS Materials Labor Subcontract Equipment Other 92,214.00 199,690.00 401,948.00 20,833.00 1,352.00 716,037.00 11.7% 25.3% 50.9% 2.6% 0.2% 90.7% Total Construction Costs EQUIPMENT COSTS Rent and Lease Payments Depreciation Repairs and Maintenance Fuel and Lubrication Taxes, Licenses, and Insurance Equipment Costs Charged to Jobs Total Equipment Costs 3,773.00 6,673.00 2,734.00 7,289.00 364.00 20,833.00 0.5% 0.8% 0.3% 0.9% 0.0% 2.6% 0.0% GROSS PROFIT 73,802.00 9.3% OVERHEAD 53,827.00 6.8% NET PROFIT FROM OPERATIONS 19,975.00 2.5% OTHER INCOME AND EXPENSES 1,162.00 0.1% PROFIT BEFORE TAXES 21,137.00 2.796 INCOME TAX 3,921.00 0.5% PROFIT AFTER TAXES 17,216.00 2.2%