Peak Performance Sporting Goods Company Has Just Applied for a Bank

question 307

Multiple Choice

Peak Performance Sporting Goods Company has just applied for a bank loan in order to expand the business.Using the most recent Balance Sheet data provided by the company owner,you calculate that the company's current ratio is 2.5.In your presentation to the company boss,you remark:

• A)Peak Performance is currently having trouble meeting its short-term obligations.
• B)Peak Performance has $2.50 that it owes each month,for every $1.00 of cash that it is generating.
• C)Peak Performance has $2.50 of current assets for each $1.00 of currently liabilities.
• D)Due to the fact that most of Peak Performance's current assets are tied-up in inventory,there is no need to worry about whether Peak Performance will be able to make loan payments.

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Definitions:

Visual Field

The total area in which objects can be seen in the peripheral vision while the eye is focused on a central point.

Sex Hormones

Chemical substances produced by the body that regulate sexual development, behavior, and reproduction.

Reproduction

The biological process by which new individual organisms are produced from their parents.

Neurotransmitters

Chemicals released by neurons that transmit signals across a synapse from one neuron to another.