Calculate the Current Ratio Given the Following Information: Cash =

question 240

Multiple Choice

Calculate the current ratio given the following information: cash = $4,000; total current assets = $21,000; cash ratio = 0.40.

• A) 2.09
• B) 2.10
• C) 2.11
• D) 2.12
• E) 2.13

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Definitions:

Inventories

The range of goods or materials held by a company for the purpose of production, sale, or repair in the ordinary course of business.

Net Operating Income

The profit generated from a company's regular business operations, excluding expenses from interest and taxes.

Variable Costing

A costing method that includes only variable costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Segmented Income Statements

Financial reports that show income, expenses, and profitability for different parts of an organization, such as departments or products.