P & B Manufacturing P & B Manufacturing Comparative Balance Sheet Income Statement ( dollars in millions) For Year Ended December 31 Ending Balance Beginning Balance (dollars in millions) Assets Current assets: Sales 4,450 Cash and cash equivalents 65 91 Cost of goods sold 3,550 Accounts Receivable 530 572 Gross Margin 900 Inventory 600 580 Selling and administrative expenses 320 Total current assets 1,195 1,243 Net operating income 80 Property, plant and equipment 1,719 1, 656 Nonoperating items: Gain on sale of equipment 4 Less accumulated depreciation 640 480 Income before taxes 84 Net property, plant and equipment 1,079 1, 176 Income taxes 29 Total assets 2,274 2,419 Net Income 55 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 180 180 Accrued liabilities 94 105 P & B Manufacturing also provided the following information: Income taxes payable 72 88 1 The company sold equipment that had an original cost of $15 million and Total current liabilities 346 373 accumulated depreciation of $9 million. The cash proceeds from the sale were Bonds payable 180 310 $11 million. The gain on the sale was $4 million. Total liabilities 526 683 2 The company did not issue any new bonds during the year Stockholders' equity: Common stock 800 800 3 The company paid a cash dividend during the year Retained earnings 948 936 4 The company did not complete any common stock transactions during the Total stockholders' equity 1,748 1, 736 year Total liabilities and stockholders' equity 2,274 2, 419To assess the liquidity at the end of the year calculate Current Ratio and Acid-test (quick). Round your answers to 2 decimal places - for example 5.67 Provide the support calculations for your ratios in the area below. For example 56.70/10 =5.67 2a Calculate the Current Ratio 2b Calculate the Acid-test (quick) ratio