Exhibit 6-2 Given the Following Information for the Green Company

question 82

Multiple Choice

Exhibit 6-2 Given the following information for the Green Company:
$\begin{array}{ll}\text { Net sales (all on account) } & \$ 5,200,000 \\\text { Interest expense } & 240,000 \\\text { Income tax expense } & 280,000 \\\text { Net income } & 420,000 \\\text { Income tax rate } & 40 \%\\\text { Total assets: }\\&\text { January } 1,2010 & \$ 1,800,000 \\&\text { December } 31,2010 & 2,400,000\\\text { Stockholders' equity: }\\&\text { January } 1,2010 & 1,500,000 \\&\text { December } 31,2010 & 1,600,000\\\text { Current assets, December } 31,2010 & 700,000 \\\text { Quick assets, December } 31,2010 & 400,000 \\\text { Current liabilities, December 31, 2010 } & 300,000\\\text { Net accounts receivable: }\\&\text { January } 1,2010 & 200,000 \\&\text { December } 31,2010 & 180,000\end{array}$
- Refer to Exhibit 6-2.Green's acid-test ratio at December 31, 2010, was

• A)3.67 times
• B)2.33 times
• C)1.33 times
• D)0.43 times

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