Use the Following Information for Questions:
Blue Sea Corporation's Books

question 5

Multiple Choice

Use the following information for questions:
Blue Sea Corporation's books revealed the following for 2011 and 2010: $$\begin{array} { l c r } & 2011 & 2010 \\\text { Cash } & 27,750 & \$ 21,250 \\\text { Accounts receivable }& 42,000 & 37,500 \\\text { Inventory } & 72,250 & 61,600 \\\text { Other prepaid assets } & 12,500 & 12,500 \\\text { Accounts payable } & 41,250 & 38,000 \\\text { Other current payables } & 13,000 & 15,000 \\\text { Sharehol ders' equity }& 100,250 & 79,850 \\\text { Sales } & 525,000 & 450,750 \\\text { Cost of sales }& 300,000 & 240,750 \\\text { Operating expenses } & 70,000 & 65,000 \\\text { Net income } & 155,000 & 145,000\end{array}$$
-The current ratio for the 2011 year-end is closest to?

• A)2.85
• B)2.62
• C)1.29
• D)1.02

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Definitions:

Significance Level

The threshold chosen by the researcher for rejecting the null hypothesis; often denoted by alpha (α) and used in hypothesis testing.

Mousetrap

A device designed to catch or kill mice, typically involving a spring-loaded mechanism.

Alternative Hypothesis

A statement in hypothesis testing that proposes a difference or association, contrasting with the null hypothesis which suggests no effect.

Physicians

Medical professionals who are qualified to diagnose and treat diseases, prescribe medications, and perform medical procedures.