Use the Following Information for Questions Melrose Enterprise's Credit Terms Are Net 30 Days

question 41

Multiple Choice

Use the following information for questions: $\begin{array}{l}\begin{array}{lrr}&2011&2010\\\text { Current Assets }\\\text { Cash } & \$ 25,000 & \$ 26,250 \\\text { Accounts Receivable } & 247,500 & 299,000 \\\text { Inventory } & 1,950,000 & 1,725,000 \\\text { Prepaid expenses } & 4,000 & 4,000\\\text { Total Current Assets } & \$ 2,226,500&\$ 2,054,250\\\\\text { Current Liabilities } & \$ 1,400,000 & \$ 1,225,000 \\\text { Net Credit Sales } & \$ 2,400,000 & \$ 2,255,000\end{array}\end{array}$ Melrose Enterprise's credit terms are net 30 days.
-Melrose Enterprise's quick ratio for 2011 is:

• A)1.59:1
• B)1.39:1
• C)0.88:1
• D)0.19:1

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Definitions:

Sales Message

A message intended to influence or educate prospective customers regarding a service or product.

Quick Action

Prompt response or decision-making in a timely manner.

Singles Night

Social events typically organized by bars, clubs, or other venues to cater to individuals who are single, facilitating opportunities for meeting potential romantic partners.

Variable

An element, feature, or factor that is likely to vary or change; it is a concept used in mathematical functions and statistical analysis.