$200,000 $120,000 $ 80,000 ABC Manufacturing Inc. Income Statement Year Ended December 31, 20X4 Sale Cost of goods sold Gross Profit Operating Expenses $40,000 Loss on Sale of equipment $ 2,000 Profit from Operations Other expenses Interest Expense Profit before Income Tax Income Tax Expense Profit $ 42,000 $ 38,000 $ 2,000 $ 36,000 $ 8,000 $ 28,000 ABC Manufacturing Inc. comparative balance sheet at December 31 20X4 20x3 Cash 4,500 $ 4,300 Accounts Receivable $ 72,000 $ 6,500 Inventory $110,000 $140,000 Prepaid Expenses $ 1,550 $ 1,020 Equipment $ 98,000 $100,000 Accumulated Depreciation equipment $(50,000) $(42,000) Total Assets $236,050 $209,820 Account Payable $ 15,330 Interest Payable $ 510 Income taxes payable $ 10,800 Dividends Payable $ 1,800 Long-term Notes Payable $ 50,000 Common shares $130,000 Retained Earnings $ 27,610 Total Liabilities & Shareholders' Equity $236,050 $ 9,900 $ 10 $ 9,500 $ 3,800 $ 65,000 $120,000 $ 1,610 $209,820 Additional Information: 1. Operating expenses include depreciation expense of $10,000 2. Accounts Payable related to the purchase of inventory 3. Equipment that cost $8,000 was sold at a loss of $2,000 4. New equipment was purchased during the year for $6,000 5. Dividends declared and paid in 20X4 totaled $2,000 6. Common shares were sold for $10,000 cash 7. Interest payable in 20X4 was $500 greater than interest payable in 20X3 The current ratio at December 20X4 was: Multiple Choice Equal or above 19.84 None of the other alternatives are correct Equal or below 4.95 Between 9.92 and 19.84 Between 4.96 and 9.91