Reference: 13-07
Financial Statements for Orantes Company Appear Below:
Orantes

question 3

Multiple Choice

Reference: 13-07
Financial statements for Orantes Company appear below:
Orantes Company
Balance Sheet
December 31, 20X6 and 20X5
(dollars in thousands) $\begin{array}{|l|l|l|}\hline & 20 X 6 & 20 X 5 \\\hline \text { Current assets: } & & \\\hline \text { Cash and marketable securities } & \$ 120 & \$ 100 \\\hline \text { Accounts receivable, net } & 180 & 160 \\\hline \text { Inventory } & 130 & 130 \\\hline \text { Prepaid expenses } & 50 & 50 \\\hline \text { Total current assets } & 480 & 440 \\\hline \text { Noncurrent assets: } & & \\\hline \text { Plant \& equipment, net } & 2,010 & 1,970 \\\hline \text { Total assets } & \$ 2,490 & \$ 2,410 \\\hline & & \\\hline \text { Current liabilities: } & & \\\hline \text { Accounts payable } & \$ 120 & \$ 120 \\\hline \text { Accrued liabilities } & 30 & 40 \\\hline \text { Notes payable, short term } & 170 & 170 \\\hline \text { Total current liabilities } & 320 & 330 \\\hline \text { Noncurrent liabilities: } & & \\\hline \text { Bonds payable } & 270 & 300 \\\hline \text { Total liabilities } & 590 & 630 \\\hline \text { Shareholders' equity: } & & \\\hline \text { Preferred shares, \$10 par, 10\% } & 120 & 120 \\\hline \text { Common shares, \$10 par } & 200 & 200 \\\hline \text { Additional paid-in capital--common shares } & 270 & 270 \\\hline\end{array}$ Orantes Company
Income Statement
For the Year Ended December 31, 20X6 (dollars in thousands) $$\begin{array} { | l | r | } \hline \text { Sales (all on account) } & \$ 2,510 \\\hline \text { Cost of goods sold } & 1,750 \\\hline \text { Gross margin } & 760 \\\hline \text { Operating expenses } & 300 \\\hline \text { Net operating income } & 460 \\\hline \text { Interest expense } & 30 \\\hline \text { Net income before taxes } & 430 \\\hline \text { Income taxes (30\%) } & 129 \\\hline \text { Net income } & \$ 301 \\\hline\end{array}$$ Dividends during 20X6 totalled $181 thousand, of which $12 thousand were preferred dividends. The market price of a share of common stock on December 31, 20X6 was $280.
-Eral Company has $17,000 in cash, $3,000 in marketable securities, $36,000 in curren? receivables, $24,000 in inventories, and $45,000 in current liabilities. ratio is closest to:

• A)0.80 to 1.
• B)0.44 to 1.
• C)1.24 to 1.
• D)1.78 to 1.

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Definitions:

Employee Attitudes

The beliefs and feelings employees have about their job, role, and organization, which can significantly affect their job performance and satisfaction.

Human Capital Component

Refers to the economic value of an employee's skill set, including education, training, and experience.

Employees' Skills

The abilities and competencies that employees possess, which contribute to the performance of their job duties.