Compute the current ratios for 2016 and 2015 from the following data:

Begin by selecting the formula to compute the current ratio.

Current ratio =Total current assets / Total current liabilities

Now, compute the current ratios for 2016 and 2015.

(Round your answers to two decimalplaces, X.XX.)

Lanfield, Inc.

Comparative Income Statement

Years Ended December 31, 2016 and 2015

Comparative Balance Sheet

December 31, 2016 and 2015

Transcribed Image Text:

2016 2015 Net Sales $468,000 $423,000 Cost of Goods Sold 238,000 212,000 Gross Profit 230,000 211,000 Operating Expenses 136,000 134,000 Income from Operations 94,000 77,000 Interest Expense 11,000 14,000 Income before Income Tax 83,000 63,000 Income Tax Expense 18,000 22,000 Net Income $65,000 $41,000 Lanfield, Inc. Assets Current Assets: Cash Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets Property, Plant, and Equipment, Net Total Assets 2016 2015 2014* $98,000 $97,000 112,000 119,000 147,000 162,000 12,000 7,000 369,000 385,000 219,000 176,000 $588,000 $561,000 $600,000 $106,000 202,000 Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Preferred Stock, 4% Common Stockholders' Equity, no par Total Liabilities and Stockholders' Equity * Selected 2014 amounts $226,000 122,000 348,000 108,000 132,000 $588,000 $246,000 94,000 340,000 108,000 113,000 $561,000 94,000 2016 2015 Net Sales $468,000 $423,000 Cost of Goods Sold 238,000 212,000 Gross Profit 230,000 211,000 Operating Expenses 136,000 134,000 Income from Operations 94,000 77,000 Interest Expense 11,000 14,000 Income before Income Tax 83,000 63,000 Income Tax Expense 18,000 22,000 Net Income $65,000 $41,000 Lanfield, Inc. Assets Current Assets: Cash Accounts Receivables, Net Merchandise Inventory Prepaid Expenses Total Current Assets Property, Plant, and Equipment, Net Total Assets 2016 2015 2014* $98,000 $97,000 112,000 119,000 147,000 162,000 12,000 7,000 369,000 385,000 219,000 176,000 $588,000 $561,000 $600,000 $106,000 202,000 Liabilities Total Current Liabilities Long-term Liabilities Total Liabilities Stockholders' Equity Preferred Stock, 4% Common Stockholders' Equity, no par Total Liabilities and Stockholders' Equity * Selected 2014 amounts $226,000 122,000 348,000 108,000 132,000 $588,000 $246,000 94,000 340,000 108,000 113,000 $561,000 94,000

Answer rating: 100% (QA)

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