Use the Following Information for Questions Below
Eugene Enterprise Ltd

question 49

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's quick ratio for 2020 is

• A)1.59:1.
• B)1.39:1.
• C)0.88:1.
• D)0.19:1.

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Definitions:

Internet Entrepreneurship

The process of launching and managing a business venture online to capitalize on opportunities presented by the internet.

Australasian Entrepreneurs

Individuals from Australia and New Zealand who initiate and manage a business venture, taking on financial risks to do so.

E-business

The conduct of business processes and transactions through electronic means, typically over the internet.

Succession Plan

Describes how the leadership transition and related financial matters will be handled.