The comparative financial statements for Chinook Company are below:

Required:
1. Complete the following columns for each line item in the preceding comparative financial statements:

2. By what amount did the current ratio change from Year 1 to Year 2?

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Income Statement Sales revenue Cost of goods sold Gross profit Operating expenses and interest expense Pretax income Income tax Net income Balance Sheet Cash Accounts receivable (net) Inventory Property and equipment (net) Total assets Current liabilities (no interest) Long-term liabilities (interest rate: 10%) Common stock ($5 par value, 6,000 shares outstanding) Retained earnings Total liabilities and stockholders' equity Year 2 $190,000 112,000 78,000 56,000 22,000 8,000 $ 14,000 $ 4,000 14,000 40,000 45,000 $103,000 $ 16,000 45,000 30,000 12,000 $103,000 Year 1 $167,000 100,000 67,000 53,000 14,000 4,000 $ 10,000 $7,000 18,000 34,000 38,000 $ 97,000 $ 17,000 45,000 30,000 5,000 $ 97,000ti Go to