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Marcial Company Balance Sheet December 31, 20X6 and 20X5 (dollars in thousands) 20X6 20X5 Current assets: Cash and marketable securities $140 $140 Accounts receivable, net
Marcial Company Balance Sheet December 31, 20X6 and 20X5 (dollars in thousands) 20X6 20X5 Current assets: Cash and marketable securities $140 $140 Accounts receivable, net 110 110 Inventory 140 130 Prepaid expenses 50 50 Total current assets 440 430 Noncurrent assets: Plant & equipment, net 1,550 1,480 Total assets $1,990 $1,910 Current liabilities: Accounts payable $120 $170 Accrued liabilities 10 40 Notes payable, short term 110 100 Total current liabilities 240 310 Noncurrent liabilities: Bonds payable 390 400 Total liabilities 630 710 Shareholders' equity: Preferred shares, $10 par, 8% 120 120 Common shares, $5 par 200 200 Additional paid-in capital--common shares 250 250 Retained earnings 790 630 Total shareholders' equity 1,360 1,200 Total 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) $1,630 Cost of goods sold 1,140 Gross margin 490 Operating expenses 190 Net operating income 300 Interest expense 40 Net income before taxes 260 Income taxes (30%) 78 Net income $182 Marcial Company's current ratio at the end of 20 6 was closest to: Multiple Choice 1.83 to 1. 0.35 to 1. 1.22 to 1. 0.38 to 1
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