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 current ratio at the end of Year 2 is closest to:
A. 0.38
B. 0.32
C. 1.25
D. 1.20
Answer: C
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During August, Boxer Company sells $356,000 in merchandise that has a one year warranty. Experience shows that warranty expenses average about 5% of the selling price. The warranty liability account has a credit balance of $12,800 before adjustment. Customers returned merchandise for warranty repairs during the month that used $9,400 in parts for repairs. The entry to record the estimated warranty expense for the month is:
A. Debit Estimated Warranty Liability $17,800; credit Warranty Expense $17,800. B. Debit Estimated Warranty Liability $9,400; credit Warranty Expense $9,400. C. Debit Warranty Expense $14,400; credit Estimated Warranty Liability $14,400. D. Debit Warranty Expense $17,800; credit Estimated Warranty Liability $17,800. E. Debit Warranty Expense $5,000; credit Estimated Warranty Liability $5,000.
Which one of the following would not be considered an advantage of the corporate form of organization?
A) Government regulation B) Separate legal existence C) Continuous life D) Limited liability of stockholders
State and local governments are exempted from the provisions of the Civil Rights Act and Equal Employment law.
Answer the following statement true (T) or false (F)
E-commerce refers to exchanges between organizations (not individuals) and the activities that facilitate those exchanges.
Answer the following statement true (T) or false (F)