Last Year Thatcher Industries Had a Current Ratio of 1

question 38

Multiple Choice

Last year Thatcher Industries had a current ratio of 1.2, a quick ratio of 0.8, and current liabilities of $500,000. Which of the following statements is most correct?

• A) If the company obtained a short-term bank loan for $500,000 and used the proceeds to purchase inventory, its current ratio would fall.
• B) Last year Thatcher industries had $200,000 in inventories.
• C) Last year Thatcher industries had $416,667 in current assets.
• D) All of the answers above are correct.
• E) Answers a and b are correct.

Recognize the principles behind the systems/contingency and transformational models, including their adaptability and approach to management and communication.

Describe how virtual organizations operate and their temporary nature.

Understand the concept of mutual adjustment as a method of coordination.

Recognize the importance of horizontal communication in various organizational models.

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Definitions:

Standard Deviation

A statistical measure of the dispersion or variability within a data set, indicating how spread out the values are.

Percentile

A statistical value that indicates the relative standing of a data point within a dataset, often used to compare individual scores to a broader population.

Mean

The arithmetic average of a set of numbers, calculated by adding all the numbers together and then dividing by the count of those numbers.

Reliable

The quality of being consistently good in quality or performance; trustworthy.