Skip to main content

Chapter 17 Homework

AnswerSaved

Help opens in a new windowSave & ExitSubmit

Item3

10points

eBookReferences

Item 3

The condensed statements of Independent Auto Inc. follow:

Independent Auto Inc.
Income Statement ($000)
For Years Ended December 31
	2020				2019				2018
Net sales	$	210,500			$	193,700			$	168,500
Cost of goods sold		125,559				119,825				106,553
Gross profit from sales	$	84,941			$	73,875			$	61,947
Selling expenses	$	29,752			$	26,770			$	22,301
Administrative expenses		19,061				27,085				13,959
Total operating expenses	$	48,813			$	53,855			$	36,260
Profit before taxes	$	36,128			$	20,020			$	25,687
Income taxes		6,918				6,302				5,368
Profit	$	29,210			$	13,718			$	20,319

Independent Auto Inc.
Balance Sheet ($000)
December 31
	2020				2019				2018
Assets
Current assets	$	35,586			$	28,197			$	37,104
Non-strategic investments		0				680				3,429
Plant and equipment, net		66,300				70,500				43,200
Total assets	$	101,886			$	99,377			$	83,733
Liabilities and Equity
Current liabilities	$	14,965			$	14,797			$	14,461
Common shares		60,000				60,000				45,300
Retained earnings		26,921				24,580				23,972
Total liabilities and equity	$	101,886			$	99,377			$	83,733

Required: 1. Calculate each years current ratio. (Round the final answers to 1 decimal place.)

2. Express the income statement data in common-size percentages. (Round your final percentage answers to 2 decimal places.)

3. Express the balance sheet data in trend percentages with 2018 as the base year. (Round your final percentage answers to 2 decimal places.)

Prev

Question 3 of 3 Total3 of 3

Visit question mapThis is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next