THORN COMPANY Balance Sheets As of December 31 2008 2007 Assets Current Assets:

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THORN COMPANY Balance Sheets As of December 31 2008 2007 Assets Current Assets: Cash $ 16,000 $ 12,000 Marketable Securities 20,000 6,000 Accounts Receivable (net) 54,000 46,000 Inventories 135,000 143,000 Prepaid Items 25,000 10,000 Total Current Assets $250,000 $217,000 Investments $ 27,000 $ 20,000 Plant (net) 270,000 255,000 Land 29,000 24,000 Total Assets $576,000 $516,000 Equities Liabilities: Current Liabilities: Notes Payable $ 17,000 $ 6,000 Accounts Payable 113,800 100,000 Salaries Payable 21,000 15,000 Total Current Liabilities $151,800 $121,000 Noncurrent Liabilities: Bonds Payable $100,000 $100,000 Other 32,000 27,000 Total Noncurrent Liabilities $132,000 $127,000 Total Liabilities $283,800 $248,000 Stockholders' Equity: Preferred Stock, $10 par, 4% cumulative, $ 70,000 $ 70,000 nonparticipating; 7,000 shares authorized and issued; no dividends in arrears) Common Stock ($5 par, 50,000 shares 50,000 50,000 authorized; 10,000 shares issued Paid-In Capital in excess of par-Preferred 10,000 10,000 Paid-In Capital in excess of par-Common 30,000 30,000 Retained Earnings 132,200 108,000 Total Stockholders' Equity $292,200 $268,000 Total Liabilities and Stockholders' Equity $576,000 $516,000 THORN COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2008 2007 Revenues: Sales (net) $230,000 $210,000 Other Revenues 8,000 5,000 Total Revenues $238,000 $215,000 Expenses: Cost of Goods Sold $120,000 $103,000 Selling, General and Administrative 55,000 50,000 Interest Expense 8,000 7,200 Income Tax Expense 23,000 22,000 Total Expenses $206,000 $182,200 Net Earnings (Net Income) $ 32,000 $ 32,800 Retained Earnings, January 1 $108,000 $ 83,000 Less: Preferred Stock Dividends 2,800 2,800 Common Stock Dividends 5,000 5,000 Retained Earnings, December 31 $132,200 $108,000 Quick ratio.(Round your answers to 2 decimal places.) 2008 2007 Quick assets THORN COMPANY Balance Sheets As of December 31 2008 2007 Assets Current Assets: Cash $ 16,000 $ 12,000 Marketable Securities 20,000 6,000 Accounts Receivable (net) 54,000 46,000 Inventories 135,000 143,000 Prepaid Items 25,000 10,000 Total Current Assets $250,000 $217,000 Investments $ 27,000 $ 20,000 Plant (net) 270,000 255,000 Land 29,000 24,000 Total Assets $576,000 $516,000 Equities Liabilities: Current Liabilities: Notes Payable $ 17,000 $ 6,000 Accounts Payable 113,800 100,000 Salaries Payable 21,000 15,000 Total Current Liabilities $151,800 $121,000 Noncurrent Liabilities: Bonds Payable $100,000 $100,000 Other 32,000 27,000 Total Noncurrent Liabilities $132,000 $127,000 Total Liabilities $283,800 $248,000 Stockholders' Equity: Preferred Stock, $10 par, 4% cumulative, $ 70,000 $ 70,000 nonparticipating; 7,000 shares authorized and issued; no dividends in arrears) Common Stock ($5 par, 50,000 shares 50,000 50,000 authorized; 10,000 shares issued Paid-In Capital in excess of par-Preferred 10,000 10,000 Paid-In Capital in excess of par-Common 30,000 30,000 Retained Earnings 132,200 108,000 Total Stockholders' Equity $292,200 $268,000 Total Liabilities and Stockholders' Equity $576,000 $516,000 THORN COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2008 2007 Revenues: Sales (net) $230,000 $210,000 Other Revenues 8,000 5,000 Total Revenues $238,000 $215,000 Expenses: Cost of Goods Sold $120,000 $103,000 Selling, General and Administrative 55,000 50,000 Interest Expense 8,000 7,200 Income Tax Expense 23,000 22,000 Total Expenses $206,000 $182,200 Net Earnings (Net Income) $ 32,000 $ 32,800 Retained Earnings, January 1 $108,000 $ 83,000 Less: Preferred Stock Dividends 2,800 2,800 Common Stock Dividends 5,000 5,000 Retained Earnings, December 31 $132,200 $108,000

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