Question
Information for Marigold Corp. is given below: Marigold Corp. Balance Sheet December 31, 2021 Assets Equities Cash $ 288000 Accounts payable $ 634000 Accounts receivable
Information for Marigold Corp. is given below:
Marigold Corp.
Balance Sheet
December 31, 2021
Assets
Equities
Cash $ 288000
Accounts payable $ 634000
Accounts receivable (net) 1956000
Income taxes payable 192000
Inventories 2431000
Miscellaneous accrued payables 227000
Plant and equipment,
Bonds payable (8%, due 2023) 1874000
net of depreciation 1982000
Preferred stock ($100 par, 6%
Patents 258000
cumulative nonparticipating) 757000
Other intangible assets 73900
Common stock (no par, 60,000)
Total Assets $6988900
shares authorized, issued
and outstanding) 112500
Retained earnings 2408900
Treasury stock-1500 shares of preferred (229000)
Total Equities$6988900
Marigold Corp.
Income Statement
Year Ended December 31, 2021
Net sales $8500000
Cost of goods sold 5700000
Gross profit 2800000
Operating expenses (including bond interest expense) 1400000
Income before income taxes 1400000
Income tax 420000
Net income $ 980000
Additional information:
There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2021, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2021. Assume that preferred dividends for the current year have not been declared.
At December 31, 2021, the current ratio was what?
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