Canadian Bacon Inc. financial statements are presented in the table below. Based on the information in the table, calculate the firm’s current ratio.
Canadian Bacon Inc. financial statements are presented in the table below.
Based on the information in the table, calculate the firm’s current ratio.
Round the answers to two decimal places
Balance Sheet December 31, 2012
Cash and marketable securities $198,000 Accounts payable $288,000
Accounts receivable $469,000 Notes payable $65,000
Inventories $577,000 Accrued expenses $84,000
Prepaid expenses $15,700 Total current liabilities $437,000
Total current assets $1,259,700 Long-term debt $237,000
Gross fixed assets $1,954,000 Par value and paid-in-capital $199,000
Less: accumulated depreciation $476,000 Retained Earnings $1,864,700
Net fixed assets $1,478,000 Common Equity 2,063,700
Total assets $2,737,700 Total liabilities and owner’s equity $2,737,700
Income Statement, Year of 2012
Net sales (all credit) $7,546,600.00
Less: Cost of goods sold $6,112,746.00
Selling and administrative expenses $349,000.00
Depreciation expense $145,000.00
EBIT $939,854.00
Interest expense $49,500.00
Earnings before taxes $890,354.00
Income taxes $356,141.60
Net income $534,212.40
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