PRUFROCK CORPORATION 2011 and 2012 Balance Sheets ($ in millions) 2011 Assets 2012 Change Current assets Cash $ 84 $ 98 +$ 14 Accounts receivable 165 188 + 23 Inventory 393 422 + 29 Total $ 642 $ 708 +$ 66 Fixed assets Net plant and equipment $2,731 $2,880 +$149 Total assets $3.373 $3,588 +$215 Liabilities and Owners' Equity Current liabilities Accounts payable $ 312 $ 344 +$ 32 Notes payable 231 196 - 35 Total $ 543 $ 540 -$ 3 Long-term debt $ 531 $ 457 -$ 74 Owners' equity Common stock and paid-in surplus $ 500 $ 550 +$ 50 Retained earnings 1,799 2,041 +242 Total $2,299 $2,591 +$292 Total liabilities and owners' equity $3,373 $3.588 +$215 PRUFROCK CORPORATION (2012) $708 Current ratio = = 1.31 times $540 Quick Ratio = = Cash ratio = NWC to Total Asset = Interval measure = $1,344 Avg. daily cost = = $3.68 per day 365