Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year. End of current

The Amos Corporation reported the following income statement and balance sheet amounts and additional information for the end of the current year.

End of current year

End of prior year

Net sales revenue (all credit)

$ 1 comma 520 comma 000$1,520,000

Cost of goods sold

$ 1 comma 025 comma 000$1,025,000

Gross profit

$495,000

Selling/general expenses

$280,000

Interest expense

$42,000

Net Income

$173,000

Current assets

$ 116 comma 000$116,000

$82,000

Longminusterm

assets

$ 509 comma 000$509,000

$440,000

Total assets

$625,000

$522,000

Current liabilities

$ 60 comma 000$60,000

$52,000

Longminusterm

liabilities

$ 272 comma 000$272,000

$245,000

Common stockholders' equity

$293,000

$225,000

Total liabilities and stockholders' equity

$625,000

$522,000

Inventory and prepaid expenses account for $30,000 of the current year's current assets.

Average inventory for the current year is $36,250.

Average net accounts receivable for the current year is $45,000.

There are 35,000 shares of common stock outstanding.

Total dividends paid during the current year were $17,000.

The market price per share of common stock is $20.

What is the current ratio for the current year?

A.

0.670.67

B.

0.220.22

C.

0.520.52

D.

1.93

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit Analytics Data Science For The Accounting Profession

Authors: J. Christopher Westland

1st Edition

3030490904, 9783030490904

More Books

Students also viewed these Accounting questions

Question

600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago

Question

Describe the concept of diversity and diversity management.

Answered: 1 week ago

Question

How does the EEOC define sexual harassment?

Answered: 1 week ago