Q8:

J. P. Robard Mfg., Inc.
Balance Sheet ($000)
Cash	$540
Accounts receivable	2020
Inventories	1060
Current assets	$3,620
Net fixed assets	4440
Total assets	$8,060
Accounts payable	$1,140
Accrued expenses	650
Short-term notes payable	340
Current liabilities	$2,130
Long-term debt	2040
Owners' equity	3890
Total liabilities and owners' equity	$8,060

The company's current ratio is (Round to two decimal places.) \begin{tabular}{lr} \multicolumn{2}{c}{\begin{tabular}{c} J. P. Robard Mfg., Inc. \\ Income Statement (\$000) \end{tabular}} \\ Net sales (all credit) & $7,950 \\ Cost of goods sold & (3,350) \\ \cline { 2 - 2 } Gross profit & $4,600 \\ Operating expenses (includes & (3,010) \\ \$500 depreciation) & $1,590 \\ Net operating income & (350) \\ Interest expense & $1,240 \\ Earnings before taxes & (434) \\ Income taxes (35\%) & $806 \\ \hline Net income & \end{tabular}