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Information for Ayayai Corp. is given below: Ayayai Corp. Balance Sheet December 3 1 , 2 0 2 6 Assets Cash Accounts receivable ( net

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Information for Ayayai Corp. is given below:
Ayayai Corp.
Balance Sheet
December 31,2026
Assets
Cash
Accounts receivable (net)
Inventories
Plant and equipment, net of depreciation
Patents
Other intangible assets
Total Assets
$306000
1955000
2435000
1980000
259000
73100
$7008100
Equities
Accounts payable
Income taxes payable
Miscellaneous accrued payables
Bonds payable (8%, due 2028)
Preferred stock ($100 par, 6% cumulative nonparticipating)
Common stock (no par, 60,000 shares authorized, issued and outstanding)
Retained earnings
Treasury stock-1,500 shares of preferred
Total Equities
$632000
193000
222000
1872000
754000
1128000
2428100
(221000)
$7008100
Ayayai Corp.
Income Statement
Year Ended December 31,2026
Net sales
$9200000
Cost of goods sold
5900000
Gross profit
3300000
Operating expenses (including bond interest expense)
1500000
Income before income taxes
1800000
Income tax
460000
Net income
$1340000
Additional information: There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1,2026, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2026. Assume that preferred dividends for the current year have not been declared.
At December 31,2026, the current ratio would be computed as follows:
$6964000-: $825000.
$4696000-: $825000.
$2261000-: $632000.
$4696000-: $1047000.
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