The comparative statement of financial position of Pina Colada Inc. as at June 30, 2023, and a statement of comprehensive income for the 2023 fiscal year follow: PINA COLADA INC. Statement of Financial Position June 30, 2023 December 31 Assets 2023 2022 Cash $20,000 $37,000 Accounts receivable 86,300 75,400 Inventory 103,500 101,200 Prepaid expenses 2,600 6,200 FV-OCI investments 48,000 45,100 173,000 160,000 Equipment Accumulated depreciation-equipment (35,000) (24,300) Equipment 173,000 160,000 Accumulated depreciation-equipment (35,000) (24,300) Total $398,400 $400,600 Liabilities and Shareholders' Equity Accounts payable $112,000 $98,500 Income tax payable 1,500 3,800 Dividends payable 5,600 0 Long-term notes payable 85,000 122,000 Common shares 31,400 25,800 Retained earnings 152,500 141,500 Accumulated other comprehensive income 10,400 9,000 Total $398,400 $400,600 PINA COLADA INC. Statement of Comprehensive Income For the Year Ended June 30, 2023 Net sales $320,000 Cost of goods sold 163,000 Gross profit 157,000 Operating expenses 119,500 Income from operations 37,500 Interest expense 9,000 Income before income tax 28,500 Income tax 5,600 Net income 22.900 Other comprehensive income Income tax Net income. Other comprehensive income 5,600 22,900 Unrealized gain or loss-OCI 1,400 Comprehensive income $24,300 Additional information: Pina Colada follows IFRS. Assume that interest is treated as an operating activity for purposes of the statement of cash flows. 1. 2 Operating expenses include $9.200 in depreciation expense. 3. There were no disposals of equipment during the year. 4 Common shares were issued for cash. 5. During the year. Pina Colada acquired $9,000 of equipment in exchange for long-term notes payable. 4. Common shares were issued for cash. 5. During the year, Pina Colada acquired $9,000 of equipment in exchange for long-term notes payable. The statement of cash flows for the year ended December 31, 2023 follows: PINA COLADA INC. Statement of Cash Flows For the Year Ended June 30, 2023 Cash Flows from Operating Activities Net Income/(Loss) Adjustments to reconcile net income Net Cash Provided by Operating Activities Depreciation Expense Increase in Accounts Receivable Increase in Inventory $9.200 (10,900) (2,300) $22,900 Net Income/(Loss) Adjustments to reconcile net income Net Cash Provided by Operating Activities $22,900 Depreciation Expense $9,200 Increase in Accounts Receivable (10,900) Increase in Inventory (2,300) Decrease in Prepaid Expenses 3,600 Increase in Accounts Payable 13,500 Decrease in Income Taxes Payable (2,300) 10,800 Net Cash Provided by Operating Activities 33,700 Cash Flows from Investing Activities Purchase of Equipment Net Cash used in Investing Activities (4,000) (4,000) Cash Flows from Investing Activities Purchase of Equipment Net Cash used in Investing Activities Cash Flows from Financing Activities (4,000) (4,000) Payment of Cash Dividends (6,300) Repayment of Notes Payable (46,000) Issuance of Common Shares 5,600 Net Cash used in Financing Activities (46,700) Net Decrease in Cash (17,000) Cash at Beginning of Year 37,000 Cash at End of Year $20,000 (a) Calculate the current and acid-test ratios for 2022 and 2023. (Round answers to 2 decimal places, e.g. 52.75.) Current ratio Acid test ratio 2023 :1 :1 2022 :1 :1