Use the following comparative income statements and balance sheets to complete the required ratio analysis Comparative Income Statement For the Years Ended December 31, 20 C and 20 B 20 C 20 B Net Sales $965,400 $1,028,600 Cost of goods sold 515,100 590,300 Gross profit $450,300 $438,300 Operating expenses Selling expenses $142,000 $173,400 Administrative expenses 150,200 182,400 Interest expense 29,300 34,100 Total operating expenses $321,500 $389,900 Income tax expense 45,500 18,200 Total expenses $367,000 $408,100 Net income $83,300 $30,200 Comparative Balance Sheet December 31, 20 C and 20 B Assets 20 C 20 B Cash $45,100 $48,500 Accounts receivable (net) 59,800 101,500 Merchandise inventory 150,900 171,600 Property, plant, and equipment (net) 710,500 808,800 Total assets $966,300 $1,130,400 Liabilities and Stockholders' Equity Accounts payable $108,200 $151,600 Notes payable (due 6 30 D) 70,000 70,000 Bonds payable (45 due each June) 154,000 280,000 Common stock, $10 par value 420,000 420,000 Retained earnings 214,100 208,800 Total liabilities and stockholders' equity $966,300 $1,130,400 Additional information All sales are made on account Balances of selected accounts for December 31, 20 A are accounts receivable (net), $73,800 merchandise inventory, $153,100 total assets, $906,900 common stockholders' equity, $527,200 and common shares outstanding, 42,000 20 C 20 B Number of common shares 42,000 42,000 Dividends paid $44,400 $49,000 Required Prepare a liquidity analysis by calculating for 20 B and 20 C the (a) current ratio, (b) quick ratio, (c) accounts receivable turnover, and (d) merchandise inventory turnover Indicate whether there has been an improvement or not from 20 B to 20 C Round all answers to two decimal places 20 C 20 B Improvement a Current ratio to 1 to 1 b Quick ratio to 1 to 1 c Accounts receivable turnover times per year times per year Average collection period days days d Merchandise inventory turnover times times Average number of days to sell days days

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Use the following comparative income statements and balance sheets to complete the required ratio analysis. Comparative Income Statement For the Years Ended December 31, 20-C

Use the following comparative income statements and balance sheets to complete the required ratio analysis.

Comparative Income Statement For the Years Ended December 31, 20-C and 20-B
	20-C		20-B
Net Sales		$965,400		$1,028,600
Cost of goods sold		515,100		590,300
Gross profit		$450,300		$438,300
Operating expenses
Selling expenses		$142,000		$173,400
Administrative expenses		150,200		182,400
Interest expense		29,300		34,100
Total operating expenses		$321,500		$389,900
Income tax expense		45,500		18,200
Total expenses		$367,000		$408,100
Net income		$83,300		$30,200

Comparative Balance Sheet December 31, 20-C and 20-B
Assets	20-C		20-B
Cash		$45,100		$48,500
Accounts receivable (net)		59,800		101,500
Merchandise inventory		150,900		171,600
Property, plant, and equipment (net)		710,500		808,800
Total assets		$966,300		$1,130,400
Liabilities and Stockholders' Equity
Accounts payable		$108,200		$151,600
Notes payable (due 6/30/-D)		70,000		70,000
Bonds payable (45% due each June)		154,000		280,000
Common stock, $10 par value		420,000		420,000
Retained earnings		214,100		208,800
Total liabilities and stockholders' equity		$966,300		$1,130,400

Additional information:

All sales are made on account. Balances of selected accounts for December 31, 20-A are accounts receivable (net), $73,800; merchandise inventory, $153,100; total assets, $906,900; common stockholders' equity, $527,200; and common shares outstanding, 42,000.

	20-C		20-B
Number of common shares		42,000		42,000
Dividends paid		$44,400		$49,000

Required:

Prepare a liquidity analysis by calculating for 20-B and 20-C the (a) current ratio, (b) quick ratio, (c) accounts receivable turnover, and (d) merchandise inventory turnover. Indicate whether there has been an improvement or not from 20-B to 20-C. Round all answers to two decimal places.

	20-C		20-B		Improvement?
a. Current ratio		to 1		to 1
b. Quick ratio		to 1		to 1
c. Accounts receivable turnover		times per year		times per year
Average collection period		days		days
d. Merchandise inventory turnover		times		times
Average number of days to sell		days		days