1999 income statement ($ in millions) net sales $1,384 less: cost of goods sold 605 less: depreciation 180 earnings before interest and taxes 599 less: interest paid 80 taxable income 519 less: taxes 156 net income $363 addition to retained earnings $254 dividends paid 109 young, inc. 1998 and 1999 balance sheet ($ in millions) 1998 1999 1998 1999 cash $100 $121 accounts payable $400 $350 accounts rec. 350 425 notes payable 390 370 inventory 440 410 total $790 $720 total $890 $956 long-term debt 500 550 net fixed assets 1,556 1,704 common stock 600 580 retained earnings 556 810 total assets $2,446 $2,660 total liabilities $2,446 $2,660 what is the current ratio for young in 1999? 1.13 1.21 1.23 1.33 1.47

The gilbert instrument corporation is considering replacing the wood steamer it currently uses to shape guitar sides. the steamer has 6 years of remaining life. if kept,the steamer will have depreciaiton expenses of $650 for five years and $325 for the sixthyear. its current book value is $3,575, and it can be sold on an internet auction site for$4,150 at this time. if the old steamer is not replaced, it can be sold for $800 at the endof its useful life. gilbert is considering purchasing the side steamer 3000, a higher-end steamer, whichcosts $12,000 and has an estimated useful life of 6 years with an estimated salvage value of$1,500. this steamer falls into the macrs 5-year class, so the applicable depreciationrates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. the new steamer is fasterand allows for an output expansion, so sales would rise by $2,000 per year; the newmachine's much greater efficiency would reduce operating expenses by $1,900 per year.to support the greater sales, the new machine would require that inventories increase by$2,900, but accounts payable would simultaneously increase by $700. gilbert's marginalfederal-plus-state tax rate is 40%, and its wacc is 15%.a. should it replace the old steamer? b. npv of replace = $2,083.51