#5 PROBLEM 4 RATIO ANALYSIS 30 points #5 Your answer goes here.. INSTRUCTIONS: Using the financial statements and additional Information, compute the CURRENT RATIO following ratios for 2023. Show all computations, You can use the sheet of ratio formulas for this problem Myopia Inc. COMPARATIVE BALANCE SHEET 31-Dec Assets 12/31/2023 12/31/2022 ACID TEST RATIO Cash 1,000 600 Short term Investments 900 1,400 Accounts Receivable, net 1,100 900 Inventory 1,500 1,300 Property, Plant & Equipment, net 6,000 3,800 Total Assets 10,500 8,000 PROFIT MARGIN Liabilities & Stockholders' Equity Accounts Payable 500 1,000 Short term notes payable 2,000 800 Bonds Payable 4,000 2,000 Common Stock 2,100 3,000 DAYS IN INVENTORY Retained Earnings 1,900 1,200 Total Liabilities & Stockholders' Equity 10,500 8,000 Myopia Inc. INCOME STATEMENT For the Year Ended 12-31-22 DEBT TO TOTAL ASSETS Net Sales 9,800 Cost of Goods Sold 7,000 Gross Profit 2,800 1200 Expenses 800 Operating Expenses 1,500 -100 Interest Expense 200 1900 Total Expenses 1,700 Income before income taxes 1,100 Income tax expense 300 Net Income 800 ADDITIONAL INFORMATION Cash dividends declared and paid during the year 100 Weighted average number of common shares outstanding during the year 100 Market value of common stock on December 31 was $22 per share.

R148