Norton Company Has the Following Assets on January 1, 2017

question 31

Multiple Choice

Norton Company has the following assets on January 1, 2017 and January 1, 2016.
$$\begin{array} { l r r r } & 1 / 1 / 17 & 1 / 1 / 16 \\\hline \text { Cash } & \$ 430,000 & \$ 370,000 \\\text { Accounts receivables } & ? & 333,000 \\\text { Marketable securities } & 186,000 & 130,000 \\\text { Irventory } & 220,000 & ? \\\text { Net plant and equipment } & 120,000 & 129,000\end{array}$$
If Norton's quick ratio is 2.50 for 2017 and its current liabilities are $500,000, what is the amount of its accounts receivables?

• A)$324,000
• B)$204,000
• C)$634,000
• D)There is not enough information to answer this question.

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Definitions:

Contribution Format

A form of income statement that distinguishes costs by classifying them into variable and fixed sections, thereby focusing on the contribution margin.

Contribution Margin Ratio

A ratio that measures the difference between the sales and the variable costs of a product or service, as a percentage of sales.

Cement Manufacturer

A business involved in the production and sale of cement, a key ingredient in concrete.

Margin Of Safety

The difference between the actual or expected profitability of a project and the break-even point, often used as a risk assessment measure.