1.Extracts from the balance sheet of Michigan, Inc. are as follows:

2017

Assets

Current assets:

Cash and Cash Equivalents $30,000

Accounts Receivable, Net 65,000

Merchandise Inventory 50,000

Total Current Assets 145,000

Long-term Investments 150,000

Property, Plant, and Equipment, Net 250,000

Total Assets $545,000

Total Current Liabilities $150,000

Compute the acid-test ratio.

2.The following is a summary of information presented on the financial statements of a company on December 31,207

Account 2017 2018

Net Sale Revenue $604,000 $504,000

Cost of Goods Sold 453,000 400,000

Gross profit 151,000 104,000

Selling Expenses 58,000 50,000

Net income before Income Tax Expense 93,000 54,000

Income Tax Expense 41,000 21,000

Net Income $52,000 $33,000

With respect to net sales revenue a horizontal analysis reveals?

a. decrease of 53,000 in net sale revenue

b. 2348% decrease in net sale revenue

c. $53,000 increase in net sales revenue

d. 19.84% increase in net sales revenue

Income Tax Expense

Net Income