Transic Corporation Has the Following Financial Data for 2016 and 2017

question 53

Multiple Choice

Transic Corporation has the following financial data for 2016 and 2017. ? $\begin{array}{lrr}&2017&2016\\\text { ASSETS }\\\text { Current Assets: }\\\text { Cash } & \$ 48,000 & \$ 14,000 \\\text { Marketable Securities } & 9,000 & 13,000 \\\text { Accounts Receivable } & 35,000 & 24,000 \\\text { Other Current Assets } & 15,000 & 18,000 \\\text { Total Current Assets } & 107,000 & 69,000\\\text { Fixed Assets (net) } & 140,000 & 130,000 \\\text { Total Assets } & \$ 247,000 & \$ 199,000\\\\\text { LIABILITIES }\\\text { Current Liabilities } & \$ 72,000 & \$ 52,000 \\\text { Long-term Liabilities } & 50,000 & 37,000 \\\text { Total Liabilities } & \$ 122,000 & \$ 89,000\\\text { Total Stockholders' Equity } & \$ 125,000 & \$ 110,000 \\\text { Total Liabilities And Stockholders' Equity }& \$ 247,000 & \$ 199,000\end{array}$ ?
Based on Transic's current ratio, which of the following statements is true regarding the company?

• A) Transic's current ratio has decreased, indicating that the company is in a more favorable position to obtain short-term credit than in 2016.
• B) Transic's current ratio has increased, indicating that the company is in a more favorable position to obtain short-term credit than in 2016.
• C) Transic's current ratio has increased, indicating that the company is in a less favorable position to obtain short-term credit than in 2016.
• D) Transic's current ratio has decreased, indicating that the company is in a less favorable position to obtain short-term credit than in 2016.

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Definitions:

Chart Of Accounts

A systematic list of accounts used by a business to categorize financial transactions.

Accounts Listed

Refers to the specific accounts recorded in a company's financial statements or ledgers.

Order

A request by a customer for a company to provide goods or services at a specified price and time.

Account Balance

The total amount of money in a financial account, calculated by adding all credits and subtracting all debits.