Use the comparative balance sheets and income statements below for the Louise Company in answering questions 7 through 10: Louise Company Comparative Balance Sheets December 31, 20X1 and 20X2 20X1 20X2 Assets Cash $ 61,100 $ 27,200 Accounts Receivable (net) 72,500 142,700 Inventory 122,600 107,800 Property, Plant, and Equipment (net) 577.700 507,500 Copyright 2014 Pearson Education, Inc., Publishing as Prentice Hall. Total Assets $833.900 $785,200 Liabilities and Stockholders' Equity Accounts Payable $104,700 $ 72,300 Notes Payable within one year 50,000 50,000 Bonds Payable 200,000 210,000 Common Stock-$10 par- value 300,000 300,000 Retained Earnings 179,200 152,900 Total Liabilities and Stockholders Equity $833.900 $78.5.200 272 Louise Company Comparative Income Statements For the Years Ended 12/31/X1 and 12/31/X2 Sales Cost of Goods Sold Gross Profit Operating Expenses Administrative Expenses Selling Expenses Interest Expense Income Tax Expense 20X2 20X1 $ 800,400 454,100 $346,300 $900,000 396,200 $ 503,800 $ 130,100 $ 104,600 10,300 25,000 115,500 20,000 14,000 35.000 $209,400 $275,100 $136.900 $ 71.300 Total Operating Expenses Net Income 7. The Louise Company's current ratio for 20X2 was a. 1.66 8. b. 5.39 c. 1.23 d. 1.00 Louise Company's total debt to equity ratio has a. b. c. d. decreased from 0.74 to 0.73 from 20X1 to 20X2 increase from 0.73 to 0.27 from 20X1 to 20X2 decrease from 0.32 to 0.74 from 20X1 to 20X2 increased from 0.27 to 0.32 from 20X1 to 20X2 9. Louise Company's gross profit rate for 20X1 was a. 20.58% b. 55.98% c. 16.65% d. 61.92% 10. In 20X2, Louise Company's return on sales was a. 2.39% b. 4.61% c. 23,27% d. 17.10%