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Financial statements for Maraby Corporation appear below: Maraby Corporation Balance Sheet December 31, Year 2 and Year 1 (dollars in thousands) Current assets: Cash and
Financial statements for Maraby Corporation appear below: Maraby Corporation Balance Sheet December 31, Year 2 and Year 1 (dollars in thousands) Current assets: Cash and marketable securities Accounts receivable, net Inventory Prepaid expenses Total current assets. Noncurrent assets: Plant & equipment, net Total assets Current liabilities: Accounts payable Accrued liabilities Notes payable, short term Total current liabilities Noncurrent liabilities: Bonds payable Total liabilities Stockholders' equity: Common stock, $5 par Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities & stockholders' equity Year 2 $ 220 190 140 70 620 1,180 $ 1,800 $ 100 100 160 360 450 810 160 200 630 990 $ 1,800 Year 1 $190 160 150 80 580 1,150 $ 1,730 $ 120 70 160 350 500 850 160 200 520 880 $ 1,730 Maraby Corporation Income Statement For the Year Ended December 31, Year 2 (dollars in thousands) Sales (all on account) $ 1,960 Cost of goods sold 1,370 Gross margin 590 Selling and administrative expense 230 Net operating income 360 Interest expense Net income before taxes 50 310 93 Income taxes (30%) Net income $ 217 Maraby Corporation's current ratio at the end of Year 2 was closest to: Multiple Choice 1.34 1.72 0.60 0.44 O O O
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