23. Determine the current liabilities to net worth ratio for the commercial construction company in Figures 6-3 and 6-4. What insight does this give you into the com- pany's financial operations? ASSETS CURRENT ASSETS EASTSIDE CONTRACTORS BALANCE SHEET Current Last Year Year Cash 118,826 78,470 Accounts Receivable-Trade 243,300 171,734 Accounts Receivable-Retention 12,905 12.929 Inventory 0 0 Costs and Profits in Excess of Billings 17.507 10,562 Notes Receivable 8,441 0 Prepaid Expenses 3,398 2,463 Other Current Assets 6,228 3,792 EASTSIDE CONTRACTORS INCOME STATEMENT Total Current Assets 408.405 279,950 REVENUES 2,225,379 FIXED AND OTHER ASSETS Land 46,000 46,000 CONSTRUCTION COSTS Buildings 60,006 60,006 Materials 414,840 Construction Equipment 56.727 56,727 Labor 564,783 Trucks and Autos 31.159 31,159 Subcontract 932,250 Office Equipment 35,193 35,193 Equipment 68.506 Total Fixed Assets 229,085 229,085 Other 2,761 Less Acc. Depreciation 133.314 112,393 Total Construction Costs 1,983,140 Net Fixed Assets 95,771 116,692 Other Assets 110,345 115,952 EQUIPMENT COSTS Total Assets 614,521 512,594 Rent and Lease Payments 21,654 LIABILITIES Depreciation 18,203 Current Liabilities Repairs and Maintenance 10,805 Accounts Payable-Trade 191,046 142,789 Fuel and Lubrication 16,982 Accounts Payable-Retention 14,945 10,159 Taxes, Licenses, and Insurance 862 Billings in Excess of Costs and Profits 2,961 7.935 Equipment Costs Charged to Jobs 68,506 Notes Payable 8,330 13,293 Total Equipment Costs O Accrued Payables 9.278 11.394 GROSS PROFIT Accrued Taxes 6,294 4,985 242,239 Accrued Vacation 1,960 1,802 Other Current Liabilities 16.973 23,863 OVERHEAD 207,805 Total Current Liabilities 251,787 216,220 Long-Term Liabilitios 81,668 Total Liabilities 333,455 49,781 266,001 NET PROFIT FROM OPERATIONS 34,434 OTHER INCOME AND EXPENSE 7,813 OWNER'S EQUITY Capital Stock 10,000 10,000 PROFIT BEFORE TAXES 42.247 Retained Earnings 271,066 236,593 Current Period Net Income 0 0 INCOME TAX 7,774 Total Equity 281,066 246,593 Total Liabilities and Equity 614,521 512,594 PROFIT AFTER TAXES 34,473 FIGURE AM Inconic Statement for Basiside