QUESTON 1 Not yet answered Marked out of 3.00 Flag question Current Ratio Smith and Sons, Inc Income Statement 2016 2015 9,850 $9,350 (5,500) (5,200) 4,350 4,150 in millions) Net sales Cost of goods sold Gross profit Selling and administrative expenses (2,800) Income from operations Interest expense Income before income taxes Income tax expense Net income (2,700) ,550 1,450 (300) (250) 250 1,200 (420) (400) 830 800 Smith and Sons, Inc. Balance Sheet (in millions) Assets Current assets Cash and cash equivalents Accounts receivable 2016 2015 50 250 900 800 Smith and Sons, Inc. Balance Sheet 2016 2015 (in 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 Current liabilities Long-term liabilities 50 250 900 800 350 500 400 250 1,700 1,800 2,750 2,650 5,700 5,900 10,150 10,350 Total liabilities Stockholders' equity-common Total Liabilities and Stockholders Equity 2.850 2.750 5,000 5,400 7,850 8,150 2.300 2.200 10,150 10,350 Calculate the current ratio for Smith & Sons, Inc., for 2015 and 2016. Round answers to two decimal places. 2015 2016 Total Liabilities and stockhoiders Equity 10150 10,350 Calculate the current ratio for Smith & Sons, Inc., for 2015 and 2016 Round answers to two decimal places. 2015 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 improved. OThe increase in ratio indicates that Smith &Son's ability to pay its current liabilities declined. OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities declined. OThe increase in ratio indicates that Smith & Son's ability to pay its current liabilities improved. Next page onrih2019 Cambridge Business Publishers C, All Rights Reserved | Terms of Use | Privacy Policy | Return Policy User