Question I OFT The below represents the comparative financial statements of Kamla Corporation. Kamla Corporation Comparative Income Statement For the Years Ended December 31, 2016 and 2015 Assets Kamla Corporation Comparative Balance Sheet December 31, 2016 and 2015 2016 2015 Current assets: Cash $38,600 $37,500 2016 2015 Notes receivable 34,400 28,500 Net sales (all on account) $1,388,000 $1,028,000 Accounts receivable (net) 172,000 147,600 Expenses: Inventory 180,000 138,000 Cost of goods sold $816,000 $704,000 Total current assets. 425,000 351,600 Selling and administrative 211,000 227,000 Property, plant, and equipment (net) 848,000 784,000 Interest expense 15,000 15,000 Total assets $1,273,000 $1,135,600 Income tax expense 32,400 23,000 Liabilities and Stockholders' Equity Total expenses $1,074,400 $969,000 Current liabilities: Net income $313,600 $59,000 Accounts payable $245,000 $223,000 Notes payable 48,000 38.200 Total current liabilities $293,000 $261,200 Kamla Corporation Comparative Balance Sheet December 31, 2016 and 2015 Long-term liabilities; Bonds payable 233,000 164,400 Assets Current assets: inancial Ratios) 2016 2015 Question 1 of 1 -/25 Bonds payable 233,000 164,400 Total liabilities $526.000 $425,600 Stockholders' equity Common stock ($5 par) $300,000 $300,000 Retained earnings 447,000 410,000 Total stockholders' equity 747,000 $710,000 Total liabilities and stockholders' equity $1.273,000 $1.135,600 Additional data: 1) The common stock recently sold at $40 per share. 2) The weighted-average common shares outstanding for the two years, 2015 and 2016, was 90,000 shares. Part 1 Compute the current ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas) Current Ratio= art 1 Compute the current ratio for 2016. (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas.) Current Ratio - - $ What does this calculated ratio mean? (Round answer to 2 decimal places. Do not use dollar signs ($) when entering amounts. To see comma-formatted numbers reflected in your final answers, you must enter your answers with commas) For every dollar of the company needs to pay, it has of Before moving onto the next section, please do the following (for screen help, click on the hyperlinks below): 1. Scroll to the end of the page and click on the "Save for Later" button to save your work. 2. When you are ready to begin the next section, you can reference the work that you have completed by clicking on the "Printer Version" button at the top of the page. Doing this will open your saved answers in a new window to help you complete the next section 20 a c F5 Fo < DII DD A FB toi