6. Ratio computation. The financial statements of the Lone Pine Company follow. LONE PINE COMPANY Comparative Balance Sheets December 31, 20X2 and 20X1...

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	6. Ratio computation. The financial statements of the Lone Pine Company follow.

	LONE PINE COMPANY
	Comparative Balance Sheets
	December 31, 20X2 and 20X1 ($000 Omitted)
	20X2			20X1
	Assets
	Current Assets
	Cash and Short-Term Investments	$400			$600
	Accounts Receivable (net)	3,000			2,400
	Inventories	3,000			2,300
	Total Current Assets	$6,400			$5,300
	Property, Plant, and Equipment
	Land	$1,700			$500
	Buildings and Equipment (net)	1,500			1,000
	Total Property, Plant, and Equipment	$3,200			$1,500
	Total Assets	$9,600			$6,800
	Liabilities and Stockholders’ Equity
	Current Liabilities
	Accounts Payable	$2,800			$1,700
	Notes Payable	1,100			1,900
	Total Current Liabilities	$3,900			$3,600
	Long-Term Liabilities
	Bonds Payable	4,100			2,100
	Total Liabilities	$8,000			$5,700
	Stockholders’ Equity
	Common Stock		$200		$200
	Retained Earnings		1,400		900
	Total Stockholders’ Equity		$1,600		$1,100
Total Liabilities and Stockholders’ Equity			$9,600		$6,800


LONE PINE COMPANY
Statement of Income and Retained Earnings
For the Year Ending December 31,20X2 ($000 Omitted)
Net Sales*		$36,000
Less: Cost of Goods Sold	$20,000
Selling Expense	6,000
Administrative Expense	4,000
Interest Expense	400
Income Tax Expense	2,000	32,400
Net Income		$3,600
Retained Earnings, Jan. 1		900
Ending Retained Earnings		$4,500
Cash Dividends Declared and Paid		3,100
Retained Earnings, Dec. 31		$1,400
*All sales are on account.