Marked out of 3.00 P Flag questi QUESTION 2 Not yet answered Quick Ratlo Smith and Sons, Inc. Income Statement 2016 2015 (in millions) Net sales Cost of goods sold Gross profit 10,300 9,800 (5,500) (5,200) 4,800 4,600 Selling and administrative expenses (2,800) (2,700) 2,000 1,900 (300) (250) 1,700 1,650 (420) (400) 1,280 1,250 Income from operations Interest expense Income before income taxes Income tax expense Net income Smith and Sons, Inc. Balance Sheet (in millions) 2016 2015 Smith and Sons, Inc Balance Sheet 2016 2015 n millions) Assets Current assets Cash and cash equivalents Accounts receivable Inventory Other current assets Total current assets Property, plant & equipment, net Other assets Total Assets Liabilities and Stockholders' Equity 450 650 900 800 750 900 400 250 2,500 2,600 2,350 2,250 5,700 5,900 10,550 10,750 3,250 3,150 5,000 5,400 8,250 8,550 2,300 2,200 Total Liabilities and Stockholders Equity 10,550 10,750 Current liabilities Long-term liabilities Total liabilities Stockholders' equity-common Calculate the quick ratio for Smith & Sons, Inc., for 2015 and 2016 Round answers to two decimal places 2015 2016 2016 Did the company's ability to pay its current liabilities improve over the two years? OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved. OThe increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets declined. OThe increase in ratio indicates that Smith & Son's ability to pay its current liabilities using its quick assets improved. wers Previous page Next page opyright 2019 2, All Rights Reserved l of Use Privacy Policy Return Polio