UUS TO Marine out of 200 Plaquestion Current Ratio Smith and Sons, Inc Income Statement (in millions) 2016 2015 Net sales $10,400 $9.900 Cost of goods sold (5,500) (5,200) Gross profit 4,900 4,700 Selling and administrative expenses (2,800 2,700) Income from operations 2,100 2,000 Interest expense (300) 12500 Income before income taxes 1.800 1.750 Income tax expense (420) 4002 Net Income 1.350 1.350 Smith and Sons, Inc. Balance Sheet in millions) 2016 2015 Assets Current assets Cash and cash equivalents 550 750 Accounts receivable 900 800 Inventory BSO 1000 Other current assets 400 250 Total current assets 2.700 2800 Property, plant & equipment ne 2.250 2.150 Other assets 5.700 5900 Total Assets 10.650 10,850 Liabilities and Stockholders Equity Current abilities 3,350 3,250 Long-term abilities 5.000 5.400 Total 8.350 Stockholders equity couron 2300 2200 Total abilities and Stockholders' Equity 10,650 10,850 2 L2 Total Liabilities and Stockholders' Equity 10,650 10,850 Calculate the current ratio for Smith & Sons, Inc, for 2015 and 2016. Round answers to two decimal places. 2015 0 0 2016 Did the company's ability to pay its current liabilities improve over the two years? The decrease in ratio indicates that Smith & Son's ability to pay its current liabilities improved. The increase in ratio indicates that Smith & Son's ability to pay its current liabilities declined OThe decrease in ratio indicates that Smith & Son's ability to pay its current liabilities declined. The increase in ratio indicates that Smith & Son's ability to pay its current liabilities improved. Please answer all parts of the question Previous 8 Save Answers Copyright 2020 Cars All Rights Reserved mosollysum Politie