You Are Evaluating the Balance Sheet for Blue Jays Corporation

question 9

Multiple Choice

You are evaluating the balance sheet for Blue Jays Corporation. From the balance sheet you find the following balances: cash and marketable securities = $200,000, accounts receivable = $800,000, inventory = $1,000,000, accrued wages and taxes = $250,000, accounts payable = $400,000, and notes payable = $300,000. What are Blue Jays' current ratio, quick ratio, and cash ratio, respectively?

• A) 1.05263, 1.05263, 0.21053
• B) 2.10526, 1.05263, 0.21053
• C) 3.07692, 1.53846, 0.30769
• D) 3.07692, 1.05263, 0.30769

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Definitions:

Sandstone

a sedimentary rock consisting primarily of sand-sized minerals or rock grains, most commonly quartz.

Limestone

A type of sedimentary rock, primarily composed of calcium carbonate, often formed from the remains of marine organisms.

Shale

A fine-grained sedimentary rock formed from clay and silt-sized particles, often easily split into thin, parallel layers.

Impermeable Layers

Geological strata that do not allow the passage of water or fluids due to their tightly packed nature.