Question
Requirement 1a. Compute the current ratios for 2016 and 2015 . Begin by selecting the formula to compute the current ratio. Current ratio = Total
Requirement 1a. Compute the current ratios for
2016 and 2015.
Begin by selecting the formula to compute the current ratio.
| Current ratio | = | Total current assets / Total current liabilities |
Now, compute the current ratios for 2016 and 2015.
(Round your answers to two decimal places, X.XX.)
2016:
2015:
Lanfield, Inc.
Comparative Income Statement
Years Ended December 31, 2016 and 2015
2016
2015
Net Sales
$468,000
$423,000
Cost of Goods Sold
238,000
212,000
Gross Profit
230,000
211,000
Operating Expenses
136,000
134,000
Income From Operations
94,000
77,000
Interest Expense
11,000
14,000
Income Before Income Tax
83,000
63,000
Income Tax Expense
18,000
22,000
Net Income
$65,000
$41,000
Lanfield, Inc.
Comparative Balance Sheet
December 31, 2016 and 2015
2016
2015
2014*
Assets
Current Assets:
Cash
$98,000
$97,000
Accounts Receivables, Net
112,000
119,000
$106,000
Merchandise Inventory
147,000
162,000
202,000
Prepaid Expenses
12,000
7,000
Total Current Assets
369,000
385,000
Property, Plant, and Equipment, Net
219,000
176,000
Total Assets
$588,000
$561,000
$600,000
Liabilities
Total Current Liabilities
$226,000
$246,000
Long-term Liabilities
122,000
94,000
Total Liabilities
348,000
340,000
Stockholders' Equity
Preferred Stock, 4%
108,000
108,000
Common Stockholders' Equity, no par
132,000
113,000
94,000
Total Liabilities and Stockholders' Equity
$588,000
$561,000
* Selected 2014 amounts
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Forensic And Investigative Accounting
Authors: D. Larry Crumbley, Lester E. Heitger, Stevenson Smith
5th Edition
0808026879, 9780808026877
