Excerpts from Colter Corporation's most recent balance sheet appear below: Year 2Year 1Current assets: Cash$90 $120 Accounts receivable, net 100 110 Inventory 170 160 Prepaid expenses 40 40 Total current assets$ 400 $ 430 Total current liabilities$ 320 $ 290 Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.The acid-test (quick) ratio at the end of Year 2 is closest to:
A. 1.25
B. 0.72
C. 0.83
D. 0.59
Answer: D
You might also like to view...
Which of the following is a specific corporate governance responsibility of Executive Management?
a. Approving major changes, such as mergers.. b. Approving non-audit work performed by the audit firm. c. Reviewing the budget of the internal audit function. d. Implementing an effective ethical environment.
Warehouse stock records are the formal accounting records for inventory
Indicate whether the statement is true or false
Discuss the different types of flexibility that a producer can exhibit. Use any company mentioned in the chapter and provide an example of each
What will be an ideal response?
Elaborate on personal privacy and intellectual property, and discuss the ethical and legal challenges that information technology raises.
What will be an ideal response?