Marcial Company

Balance Sheet

December 31, 20X6 and 20X5

(dollars in thousands)20X620X5Current assets:Cash and marketable securities$140$140Accounts receivable, net110110Inventory140130Prepaid expenses5050Total current assets440430Noncurrent assets:Plant & equipment, net1,5501,480Total assets$1,990$1,910Current liabilities:Accounts payable$120$170Accrued liabilities1040Notes payable, short term110100Total current liabilities240310Noncurrent liabilities:Bonds payable390400Total liabilities630710Shareholders' equity:Preferred shares, $10 par, 8%120120Common shares, $5 par200200Additional paid-in capital--common shares250250Retained earnings790630Total shareholders' equity1,3601,200Total liabilities & shareholders' equity$1,990$1,910

Marcial Company

Income Statement

For the Year Ended December 31, 20X6

(dollars in thousands)Sales (all on account)$1,630Cost of goods sold1,140Gross margin490Operating expenses190Net operating income300Interest expense40Net income before taxes260Income taxes (30%)78Net income$182

13.

value:

1.00 points

Required information

Marcial Company's working capital (in thousands of dollars) at the end of 20 6 was closest to:

$1,360.

$570.

$440.

$200.

14.

value:

1.00 points

Required information

Marcial Company's current ratio at the end of 20 6 was closest to:

0.38 to 1.

1.22 to 1.

1.83 to 1.

0.35 to 1.