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The condensed statements of Independent Auto Inc. follow:
| Independent Auto Inc. |
| Income Statement ($000) |
| For Years Ended December 31 |
| | 2023 | | 2022 | | 2021 |
| 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 |
| | 2023 | | 2022 | | 2021 |
| 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 2021 as the base year. (Round your final percentage answers to 2 decimal places.)
Answer & Explanation
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