|
.Income Statements and Balance Sheet Balance Sheet
|
2012
|
2013
|
2014
|
|
Cash
|
$9,000
|
$7,282
|
$14,000
|
|
Short-term investments
|
48,600
|
20,000
|
71,632
|
|
Accounts receivable
|
351,200
|
632,160
|
878,000
|
|
Inventories
|
715,200
|
1,287,360
|
1,716,480
|
|
Total current assets
|
$1,124,000
|
$1,946,802
|
$2,680,112
|
|
Gross fixed assets
|
491,000
|
1,202,950
|
1,220,000
|
|
Less: Accumulated depreciation
|
146,200
|
263,160
|
383,160
|
|
Net fixed assets
|
$344,800
|
$939,790
|
$836,840
|
|
Total assets
|
$1,468,800
|
$2,886,592
|
$3,516,952
|
|
Liabilities and Equity
|
|
Accounts payable
|
$145,600
|
$324,000
|
$359,800
|
|
Notes payable
|
200,000
|
720,000
|
300,000
|
|
Accruals
|
136,000
|
284,960
|
380,000
|
|
Total current liabilities
|
$481,600
|
$1,328,960
|
$1,039,800
|
|
Long-term debt
|
323,432
|
1,000,000
|
500,000
|
|
Common stock (100,000 shares)
|
460,000
|
460,000
|
1,680,936
|
|
Retained earnings
|
203,768
|
97,632
|
296,216
|
|
Total equity
|
$663,768
|
$557,632
|
$1,977,152
|
|
Total liabilities and equity
|
$1,468,800
|
$2,886,592
|
$3,516,952
|
3. Calculate the 2014 current and quick ratios based on the projected balance sheet and income statement data. What can you say about the company's liquidity position in 2013?