The condensed statements of Independent Auto Inc. follow:Independent Auto Inc.Income Statement ($000)For Years Ended December 3120202019Net sales$210,500 $193,700125,559119,825$ 84,941$ 29,752$ 73,875$ 26,770Cost of goods soldGross profit from salesSelling expensesAdministrative expensesTotal operating expensesProfit before taxesIncome taxes2018$168,500106,553$ 61,947$ 22,30113,959$36,260$ 25,68719,061$ 48,813$36,12827,085$ 53,855$ 20,0206,9186,3025,368Profit$ 29,210$ 13,718$ 20,319Independent Auto Inc.Balance Sheet ($000)December 31202020192018AssetsCurrent assets$ 35,586$28,197$37,104Non-strategic investments06803,429Plant and equipment, net66,30070,50043,200Total assets$101,886$99,377$83,733Liabilities and EquityCurrent liabilities$ 14,965$14,797$14,461Common shares60,00060,00045,300Retained earnings26,921 24,58023,972Total liabilities and equity$101,886$99,377 $83,733Required:1. Calculate each year's current ratio. (Round the final answers to 1 decimal place.Required:1. Calculate each year's current ratio. (Round the final answers to 1 decimal place.)Current ratiosDecember 31, 20200.6 to 1December 31, 2019December 31, 20180.5 to 10.8 to 12. Express the income statement data in common-size percentages. (Round your final percei3. Express the balance sheet data in trend percentages with 2018 as the base year. (Round your finidecimal places.)INDEPENDENT AUTO INC.Balance Sheet Data in Trend Percentages (in %)December 31, 2020, 2019, and 2018202020192018AssetsCurrent assetsNon-strategic investmentsPlant and equipment, netTotal assetsLiabilities and EquityCurrent liabilitiesCommon sharesRetained earningsTotal liabilities and equity

Particulars Current ratios December 31,2020 2.4 to 1 December 31,2019 1.9 to 1 December…

The condensed Net sales Cost of goods sold 2018 $168,500 106,553 $ 61,947 $ 22,301 Gross profit from sales Selling expenses Administrative expenses Total operating expenses Profit before taxes Income taxes 13,959 $36,260 $ 25,687 5,368 Profit $ 20,319 2018 Assets Current assets $37,104 Non-strategic investments 3,429 Plant and equipment, net 43,200 Total assets $83,733 Liabilities and Equity Current liabilities $14,461 Common shares 45,300 Retained earnings 23,972 Total liabilities and equity $101,886 $99,377 $83,733 Required: - Calculate each year's current ratio. (Round the final answers to 1 decimal plac Required: 1. Calculate each year's current ratio. (Round the final answers to 1 decimal place.) Current ratios December 31, 2020 0.6 to 1 December 31, 2019 0.5 to 1 December 31, 2018 0.8 to 1 Independent Auto Inc. Income Statement ($000) For Years Ended December 31 2020 $210,500 125,559 2019 $193,700 119,825 $ 73,875 $ 26,770 $ 84,941 $ 29,752 19,061 $48,813 $36,128 27,085 $ 53,855 $ 20,020 6,918 6,302 $ 29,210 $ 13,718 Independent Auto Inc. Balance Sheet ($000) December 31 2020 2019 $ 35,586 $28,197 0 680 66,300 70,500 $101,886 $99,377 $ 14,965 $14,797 60,000 60,000 26,921 24,580

The condensed Net sales Cost of goods sold 2018 $168,500 106,553 $ 61,947 $ 22,301 Gross profit from sales Selling expenses Administrative expenses Total operating expenses Profit before taxes Income taxes 13,959 $36,260 $ 25,687 5,368 Profit $ 20,319 2018 Assets Current assets $37,104 Non-strategic investments 3,429 Plant and equipment, net 43,200 Total assets $83,733 Liabilities and Equity Current liabilities $14,461 Common shares 45,300 Retained earnings 23,972 Total liabilities and equity $101,886 $99,377 $83,733 Required: - Calculate each year's current ratio. (Round the final answers to 1 decimal plac Required: 1. Calculate each year's current ratio. (Round the final answers to 1 decimal place.) Current ratios December 31, 2020 0.6 to 1 December 31, 2019 0.5 to 1 December 31, 2018 0.8 to 1 Independent Auto Inc. Income Statement ($000) For Years Ended December 31 2020 $210,500 125,559 2019 $193,700 119,825 $ 73,875 $ 26,770 $ 84,941 $ 29,752 19,061 $48,813 $36,128 27,085 $ 53,855 $ 20,020 6,918 6,302 $ 29,210 $ 13,718 Independent Auto Inc. Balance Sheet ($000) December 31 2020 2019 $ 35,586 $28,197 0 680 66,300 70,500 $101,886 $99,377 $ 14,965 $14,797 60,000 60,000 26,921 24,580

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

Chapter1: Introduction To Business Activities And Overview Of Financial Statements And The Reporting Process

Section: Chapter Questions

Problem 23E

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