Dana Point Company Balance Sheet   % Change Yr 2 Balance Sheet Common Size Yr 2 Yr 1 Balance Sheet Cash   $7,000   $30,000 AR   $67,500   $60,000 Inventory   $49,000   $22,500 PPE   $6,000   $4,500 Total Current Assets   $129,500   $117,000 Building   $187,500   $190,000 Total Assets   $317,000   $307,000               Yr 2   Yr 1 Accounts Payable   $65,500   $63,000 Wages Payable   $37,000   $47,500 Total Current Liabilities   $102,500   $110,500 Bank Loan Payable   $83,000   $85,000 Total Liabilities   $185,500   $195,500 Common Stock   $75,000   $75,000 Retained Earnings   $56,500   $36,500 Total Liab and SE   $317,000   $307,000

Condensed financial data are presented below for the Phoenix Corporation:    20X2   20X1 Accounts receivable $ 267,500     $ 230,000   Inventory   312,500       257,500   Total current assets   670,000       565,000   Intangible assets   50,000       60,000   Total assets   825,000       695,000   Current liabilities   252,500       200,000   Long-term liabilities   77,500       75,000   Sales   1,640,000           Cost of goods sold   982,500           Interest expense   10,000           Income tax expense   77,500           Net income   127,500           Cash flow from operations   71,000           Cash flow from investing activities   (6,000 )         Cash flow from financing activities   (62,500 )         Tax rate   30 %             If the intangible assets in 20X2 are $50,000, then the long-term debt to tangible assets for 20X2 is: 10.0%   10.2%   30.7%   42.5%

Simon Company’s year-end balance sheets follow.  At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets                       Cash   $ 31,800     $ 35,625   $ 37,800   Accounts receivable, net     89,500       62,500     50,200   Merchandise inventory     112,500       82,500     54,000   Prepaid expenses     10,700       9,375     5,000   Plant assets, net     278,500       255,000     230,500   Total assets   $ 523,000     $ 445,000   $ 377,500   Liabilities and Equity                       Accounts payable   $ 129,900     $ 75,250   $ 51,250   Long-term notes payable secured bymortgages on plant assets     98,500       101,500     83,500   Common stock, $10 par value     163,500       163,500     163,500   Retained earnings     131,100       104,750     79,250   Total liabilities and equity   $ 523,000     $ 445,000   $ 377,500      (1-a) Compute the current ratio for each of the three years.(1-b) Did the current ratio improve or worsen over the three…

Balance Sheet December 31, 2021 Current Assets: Cash 46,200 Accounts Receivable (net) 260,000 Raw materials inventory (4,500 yards) 11,250 Finished goods inventory (1,500 units) 32,250 Total current assets 349,700 Plant and equipment: Buildings and equipment 900,000 Accumulated depreciation (292,000) Plant and equipment, net 608,000 Total Assets 957,700 Liabilities and Stockholders' Equity Current liabilities: 158,000 Accounts Payable Stockholders' equity: Common stock 419,800 Retained earnings 379,900 Total stockholders; equty 799,700 Total liabilities and stockholder's equity 957,700 Additional Information The company's chief financial officer (CFO), in consultation with various managers across the organization has developed the following set of assumptions to help create the 2022 budget: 1 The budgeted unit sales are 12,000 units, 37,000 units, 15,000 units and 25,000 units for quarters 1-4, respectively. Notice that the company experiences peak sales in the second and fourth…