Balance Sheet As of December 31 ASSETS Cash Accounts receivable Inventory Net plant and equipment Total assets $ 50,000 70,000 110,000 220,000 $450,000 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable Accrued expenses Long-term debt Common stock Paid-in capital Retained earnings Total liabilities and stockholders' equity $ 70,000 50,000 130,000 70,000 40,000 90,000 $450,000 MEGAFRAME COMPUTER COMPANY Income Statement For the year ended December 31 Sales (all on credit) Cost of goods sold Gross profit Sales and administrative expenses Depreciation $875,000 600,000 $275,000 30,000 55.000 Depreciation Operating profit Interest expense Profit before taxes Taxes (30%) Net income 55,000 $190,000 25,000 $165,000 49,500 $115,500 Refer to the tables above. Megaframe's current ratio is Multiple Choice (0) 1.9:1 1.8:1 1:1 Refer to the tables above. Megaframe's current ratio is Multiple Choice 1.9:1 1.8:1 1:1 3.0:1