Reference no: EM132860319
Question - The condensed balance sheet and income statement for Marjoram Company are presented below.
MARJORAM COMPANY Balance Sheet At December 31, 2021
Cash $19,000
Notes receivable (due August 15, 2022) 35,000
Accounts receivable (net) 48,400
Inventory 70,600
Property, plant, and equipment (net) 250,000
Intangible assets 12,400
Total assets $435,400
Current liabilities $108,400
Bonds payable (11%) (long-term) 100,000
Common stock 70,000
Retained earnings 157,000
Total liabilities and equity $435,400
MARJORAM COMPANY Income Statement For the Year ended December 31, 2021
Sales $704,000
Cost of goods sold 422,400
Gross profit $281,600
Operating expenses 166,200
Operating income $115,400
Interest expense 11,000
Income before income tax $104,400
Income tax expense 31,320
Net income $73,080
Required - Compute the current ratio for Marjoram Company.