Mobile Company Manufactures Computer Technology Devices $\underline{\text {Selected Income Statement Data - for the year ending December 31, 2010:}}$

question 61

Multiple Choice

Mobile Company manufactures computer technology devices. Selected financial data for Mobile is presented below, use the information to answer the following questions:
$\begin{array} { l l c }\underline{ \text { Current Assets }} & \text { As of Dec. 31, 2010 } & \text { Dec. 31, 2009 } \\ \text { Cash and short-term investments } & \$ 1,267,038 & \$ 616,604 \\ \text { Accounts Receivable (net) } & 490,816 & 665,828 \\ \text { Inventories } & 338,599 & 487,505 \\ \text { Prepaid Expenses and other current assets } & \underline{292.511 }&\underline{ \$ 21.915} \\ \text { Total Current Assets } & \$ 2,388,964 & \$ 2,061,852 \\\\ \underline{\text { Current Liabilities } }& & \$ 38,108 \\ \text { Short-term borrowings } & \$ 25,190 & 210,090 \\ \text { Current portion of long-term debt } & 182,295 & 334,247 \\ \text { Accounts payable } & 296,307 & 743,999 \\ \text { Accrued liabilities } & 941,912 & 239.793 \\ \text { Income taxes payable } & \underline{203,049} &\underline{239,793} \\\text { Total Current Liabilities }&1,648,753&1,566,237\end{array}$

$\underline{\text {Selected Income Statement Data - for the year ending December 31, 2010:}}$
$\begin{array}{llcc} \text { Net Sales} &\$4,885,340 \\ \text { Cost of Goods Sold } &2,542,353\\ \text { Operating Income} &733,541\\ \text {Net Income } &230,101\\\end{array}$


$\underline{\text {Selected Statement of Cash Flow Data - for the year ending December 31, 2010:}}$

$\begin{array}{llcc} \text { Cash Flows from Operations} &\$ 1,156,084 \\\end{array}$

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Refer to the information for Mobile Company. Mobile's current ratio in 2010 was

• A) 1.07
• B) 1.45
• C) 1
• D) .69

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Definitions:

Demand for Money

The desire or need by individuals and businesses to hold liquid assets, primarily currency and demand deposits, for transactional, precautionary, and speculative purposes.

Nominal GDP

Nominal Gross Domestic Product refers to the market value of all final goods and services produced within a country in a given period, measured in current market prices.

Expansionary Monetary Policy

A monetary policy strategy used by central banks to increase the money supply to stimulate economic growth, typically by lowering interest rates.

Aggregate Expenditure

The total spending on final goods and services in an economy over a specific time period, including consumption, investment, government purchases, and net exports.