Using the Following Year-End Information for Calvin's Clothing,calculate the Current

question 105

Multiple Choice

Using the following year-end information for Calvin's Clothing,calculate the current ratio and acid-test ratio for the business: $\begin{array}{lr}\text { Cash } & \$ 5,000 \\\text { Short-term investments } & 12,000 \\\text { Accounts receivable } & 54,000 \\\text { Inventory } & 325,000 \\\text { Prepaid expenses } & 17,500 \\\text { Accounts payable } & 106,500 \\\text { Other current payables } & 25,000\end{array}$

• A)1.80 and 1
• B)1.97 and 1.52
• C)2.73 and 1.52
• D)3.50 and 0.90
• E)1.80 and 0.90

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Definitions:

Political Activities

Actions or undertakings aimed at influencing governmental policy or elections.

Given Industry

A specific sector of the economy, often defined by the type of activity it engages in.

Seniority Systems

Policies within organizations that determine the hierarchy, privileges, and benefits based on the length of service of employees.

Arbitrary Management

A style of management based on random decisions or personal whim, rather than any systematic planning or reasoning.