The following information applies to the questions displayed below Gerrard Const

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The following information applies to the questions displayed below Gerrard Construction Co. is an excavation contractor. The following summarized date (in thousands) are taken from the December 31, 2016, financial statements: For the Year Ended December 31, 2016: Net revenues Cost of services provided Depreciation expense Operating income Interest expense Income tax expense Net income At December 31, 2016: Assets Cash and short-term investments Accounts receivable, net Property, plant, and equipment, net Total asscts $64.100 22.800 13,000 28,600 7600 6,400 14,600 $5,600 9,600 154,800 $180,000 Llabiltles and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long term) Paid-in capital Retained earnings Total liabilities and stockholdlers' equity $3000 3,200 95.000 0,000 58,800 $180,000 At December 31, 2015, total assets were $164,000 and total stockholders' equity was $65,20O. There were no changes in notes payable or paid-in capital during 2016

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Current Assets: Cash and Short term investments 5600 Accounts Receivable 19600 Total Current Assets 25200 Current Liabilities: Accounts Payable 3000 Income Tax Payable 3200 Total Current Liabilities 6200 g-1 Working Capital 25200-6200=19000 Current Ratio 25200/6200=4.06 times g-2 Company's overall liquidity is good as company is having 133% current assets of workinc capital which is good sign because it has funds always to pay short term liabilities

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