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