Use the Following Information for Questions Below
Eugene Enterprise Ltd

question 104

Multiple Choice

Use the following information for questions below
Eugene Enterprise Ltd.revealed the following information for the years ended December 31,2019 and 2020:
$\begin{array}{lrr}&2020&2019\\\hlineCurrent~ Assets&\\Cash&\$ 25,000 & \$ 26,250 \\Accounts ~Receivable&247,500 & 299,000 \\Inventory&1,950,000 & 1,725,000\\Prepaid~ expenses&\underline{4000} &\underline{4000} \\Total~ Current ~Assets&\underline{\$ 2,226,500} & \underline{\$ 2,054,250} \\Current~ Liabilities&\$ 1,400,000 & \$ 1,225,000 \\Net ~Credit~ Sales&\$ 2,400,000 & \$ 2,255,000 \\\end{array}$
Orville Enterprise's credit terms are net 30 days.
-Eugene Enterprise Ltd's 2020 current ratio is

• A)1.59:1.
• B)1.39:1.
• C)1.00:1.
• D)0.19:1.

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Definitions:

Willingness to Pay

The maximum amount an individual is prepared to sacrifice to procure a good or service or to avoid something undesirable.

Economic Signals

Indicators or signs used by consumers and producers to guide their actions, such as prices, which indicate when to buy or sell products or resources.

Producers

Entities that create, manufacture, or supply goods and services for the purpose of selling to consumers, businesses, or other producers.

Consumer Surplus

The gap between the total sum consumers are ready and able to spend for a good or service and the actual amount they pay.