Brock Company's financial information is as follows. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.AssetsLine Item DescriptionAmountCash and short-term investments$38,295 Accounts receivable (net)31,903 Inventory28,357 Property, plant, and equipment286,566 Total assets$385,121 Liabilities and Stockholders’ EquityLine Item DescriptionAmountCurrent liabilities$60,915 Long-term liabilities88,993 Common stock, $10 par69,670 Retained earnings165,543 Total liabilities and stockholders’ equity$385,121 Income StatementLine Item DescriptionAmountSales$91,601 Cost of goods sold(41,220)Gross profit$50,381 Operating expenses(28,458)Net income$21,923 Number of shares of common stock6,967 Market price of common stock$33 What is the current ratio? Round your answer to two decimal places.

The current ratio is a financial metric that assesses a company's ability to meet its short-term…

Answered: Brock Company's financial information…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 4PA: Measures of liquidity, solvency, and profitability The comparative financial statements of Marshall...

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Question

Brock Company's financial information is as follows. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.

Assets

Line Item Description	Amount
Cash and short-term investments	$38,295
Accounts receivable (net)	31,903
Inventory	28,357
Property, plant, and equipment	286,566
Total assets	$385,121

Liabilities and Stockholders’ Equity

Line Item Description	Amount
Current liabilities	$60,915
Long-term liabilities	88,993
Common stock, $10 par	69,670
Retained earnings	165,543
Total liabilities and stockholders’ equity	$385,121

Income Statement

Line Item Description	Amount
Sales	$91,601
Cost of goods sold	(41,220)
Gross profit	$50,381
Operating expenses	(28,458)
Net income	$21,923
Number of shares of common stock	6,967
Market price of common stock	$33