Refer to the Following Selected Financial Information from McCormik,LLC

question 78

Multiple Choice

Refer to the following selected financial information from McCormik,LLC.Compute the company's current ratio for Year 2.

• A)2.26.
• B)1.98.
• C)2.95.
• D)3.05.
• E)1.88.

---

Definitions:

Implicit Interest

The interest represented by the difference between the cash price of a product and the amount financed over time, not directly stated as an interest rate.

Face Value

The nominal or dollar value of a security stated by the issuer, which is the amount paid back to the holder at maturity.

Zero-Coupon Bond

A type of bond that does not pay periodic interest payments and is sold at a discount from its face value, with the full face value being paid at maturity.

Face Value

The nominal value or dollar value of a security stated by the issuer.