The Following Information Pertains to Savage Company: Balance Sheet $31,20 \mathrm{X} 2$

question 37

Multiple Choice

The following information pertains to Savage Company: Balance Sheet
At December $31,20 \mathrm{X} 2$
$\begin{array}{lrlr}\text { Current assets } & \$ 18,700 & \text { Current liabilities } & \$ 7,600 \\\text { Long-term assets } & 29,700 & \text { Long-term liabilities } & 13,250\\&&\text { Stockholders' equity }&27,550\\\text { Total assets }&\$ 48,400& \text { Total assets }&\$ 48,400 \end{array}$

Barnum Company
Income Statement
For the Year Ended December $31,20 \mathrm{X} 2$
$\begin{array}{lr}\text { Sales } & \$ 106,950 \\\text { Less: Cost of goods sold } & \underline{61,800) } \\\text { Gross profit } & \$ 45,150 \\\text { Less: Operating expenses } & \underline{31,700} \\\text { Operating income } & \$ 13,450 \\\text { Less other expenses: interest } & \underline{1,300) } \\\text { Income before taxes } & \$ 12,150 \\\text { Less: Income tax expense } & \underline{4,850) } \\\text { Net income } & \$ 7,300\end{array}$ There were 1,000 shares of common stock outstanding with a market value of $75 as of December 31, 20X2.Dividends declared and paid was $5 per share.The current ratio for 20X2 is _____times.

• A)2.46
• B)2.32
• C)0.90
• D)1.00

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Definitions:

Negative Outcomes

refers to the undesirable or harmful results of actions or conditions, often contrasted with positive results or benefits.

Adolescents

A developmental stage that describes young people transitioning from childhood to adulthood, typically characterized by significant physical, psychological, and social changes.

Formal Operational Period

In Piaget’s theory, the period from about age twelve on, in which a child can think abstractly and consider hypothetical possibilities.

Abstract Reasoning Skills

These skills involve the ability to analyze information, detect patterns and relationships, and solve problems on a complex, abstract level.