Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative financial statements for Prince Company are below: Year 2 Year 1 Income statement: Sales revenue $ 190,800 $ 168,700 Cost of goods sold

The comparative financial statements for Prince Company are below:

Year 2 Year 1
Income statement:
Sales revenue $ 190,800 $ 168,700
Cost of goods sold 112,800 100,200
Gross profit 78,000 68,500
Operating expenses and interest expense 57,100 54,100
Pretax income 20,900 14,400
Income tax 6,270 4,320
Net income $ 14,630 $ 10,080
Balance sheet:
Cash $ 4,700 $ 5,400
Accounts receivable (net) 14,400 17,400
Inventory 41,400 32,600
Property and equipment (net) 46,800 36,500
Total assets $ 107,300 $ 91,900
Current liabilities (no interest) $ 15,600 $ 16,600
Long-term liabilities (9 interest) 45,000 45,000
Common stock ($5 par value, 5,100 shares outstanding) 25,500 25,500
Retained earnings 21,200 4,800
Total liabilities and stockholders' equity $ 107,300 $ 91,900

By what amount did the current ratio change? (Round your intermediate calculations and final answer to 2 decimal places.)

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_2

Step: 3

blur-text-image_3

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

Quality Auditing In Construction Projects

Authors: Abdul Razzak Rumane

1st Edition

1032570245, 978-1032570242

More Books

Students also viewed these Accounting questions