Use the Following Data to Calculate the Current Ratio A)234 : 1
B)2

question 52

Multiple Choice

Use the following data to calculate the current ratio. Eddy Auto Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 126,000 & \text { Accounts payable } & \$ 165,000 \\\text { Accounts receivable } & 120,000 & \text { Salaries and wages payable } & 30,000 \\\text { Inventory } & 210,000 & \text { Mortgage payable } & 270,000\\\text { Prepaid insurance } & 90,000 & \text { Total liabilities } &\$465,000\\\text { Stock investments } & 255,000 & \\\text { Land } & 285,000 &\\\text { Buildings }\quad\$339,000&&\text { Common stock } & \$ 360,000 \\\text { Less: Accumulated }&&\text { Retained earnings } & 750,000\\\text { depreciation }\quad(60,000) &279,000&\text { Total stockholders' equity }&\$1,110,000\\\text { Trademarks }&210,000&\text { Total liabilities and }\\\text { Total assets }&\$1,050,000&\text { stockholders' equity }&\$1,575,000\end{array}$

• A)2.34 : 1
• B)2.80 : 1
• C)3.31 : 1
• D)1.26 : 1

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Definitions:

Financial Burdens

The strain placed on individuals or organizations due to heavy financial obligations or debt.

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A comparison of the proportion of employees in protected groups with the proportion that each group represents in the relevant labor market.

HR Planning Process

The strategic process of identifying current and future human resources needs for an organization to achieve its goals.

Statistical Models

Mathematical representations of observed data that allow for predictions and inferences about relationships among variables.