Financial statements for Maraby Corporation appear below:Maraby CorporationBalance SheetDecember 31, Year 2 and Year 1(dollars in thousands) Year 2Year 1Current assets: Cash and marketable securities$220 $190 Accounts receivable, net 190 160 Inventory 140 150 Prepaid expenses 70 80 Total current assets 620 580 Noncurrent assets: Plant & equipment, net 1,180 1,150 Total assets$1,800 $1,730 Current liabilities: Accounts payable$100 $120 Accrued liabilities 100 70 Notes payable, short term 160 160 Total current liabilities 360 350 Noncurrent liabilities: Bonds payable 450 500 Total liabilities 810 850 Stockholders' equity: Common stock, $5 par 160 160 Additional
paid-in capital 200 200 Retained earnings 630 520 Total stockholders' equity 990 880 Total liabilities & stockholders' equity$1,800 $1,730 Maraby CorporationIncome StatementFor the Year Ended December 31, Year 2(dollars in thousands)Sales (all on account)$1,960 Cost of goods sold 1,370 Gross margin 590 Selling and administrative expense 230 Net operating income 360 Interest expense 50 Net income before taxes 310 Income taxes (30%) 93 Net income$217 Maraby Corporation's acid-test (quick) ratio at the end of Year 2 was closest to:
A. 1.95
B. 0.47
C. 1.14
D. 0.51
Answer: C
You might also like to view...
Decisions made within businesses only rarely can have as great an influence on international affairs as those made within government, so they are not one of the central problems of worldwide economic integration.
Answer the following statement true (T) or false (F)
Product warranties are an expense of the period in which the product is sold
Indicate whether the statement is true or false
Which of the following concepts relates to how pay rates differ across individuals?
A. pay inequity B. pay dispersion C. pay perception D. pay priority
Seelos and Mair developed a model of _______ that leaders use to improve organizational capacity.
A. environmental analysis B. continuous improvement C. research and development D. human resource management