$1999$ Income Statement

$($$ in millions$)$

Net sales $$1,384$

Less: Cost of goods sold $605$

Less: Depreciation $180$

Earnings Before interest and taxes $599$

Less: Interest paid $80$

Taxable income $519$

Less: Taxes $156$

Net income $$363$

Addition to retained earnings $$254$

Dividends paid $109$

Young, Inc.

$1998$ and $1999$ Balance Sheet

$($$ in millions$)$

$1998199919981999$

Cash $$100$ $$121$ Accounts payable $$400$ $$350$

Accounts rec. $350425$ Notes payable $390370$

Inventory $440410$ Total $$790$ $$720$

Total $$890$ $$956$ Long$-$term debt $500550$

Net fixed assets $1,5561,704$ Common stock $600580$

Retained earnings $556810$

Total assets $$2,446$ $$2,660$ Total liabilities $$2,446$ $$2,660$

$1$ What is the current ratio for Young in $1999?$

A$)1\mathrm{.}13$

B$)1\mathrm{.}21$

C$)1\mathrm{.}23$

D$)1\mathrm{.}33$

E$)1\mathrm{.}47$

$1999$ Income Statement

$($$ in millions$)$

Net sales $$1,384$

Less: Cost of goods sold $605$

Less: Depreciation $180$

Earnings Before interest and taxes $599$

Less: Interest paid $80$

Taxable income $519$

Less: Taxes $156$

Net income $$363$

Addition to retained earnings $$254$

Dividends paid $109$

Young, Inc.

$1998$ and $1999$ Balance Sheet

$($$ in millions$)$

$1998199919981999$

Cash $$100$ $$121$ Accounts payable $$400$ $$350$

Accounts rec. $350425$ Notes payable $390370$

Inventory $440410$ Total $$790$ $$720$

Total $$890$ $$956$ Long$-$term debt $500550$

Net fixed assets $1,5561,704$ Common stock $600580$

Retained earnings $556810$

Total assets $$2,446$ $$2,660$ Total liabilities $$2,446$ $$2,660$

$1$ What is the current ratio for Young in $1999?$

A$)1\mathrm{.}13$

B$)1\mathrm{.}21$

C$)1\mathrm{.}23$

D$)1\mathrm{.}33$

E$)1\mathrm{.}47$