The Following Information Pertains to Ortiz Company What Is the Current Ratio for Ortiz?
A)1

question 134

Multiple Choice

The following information pertains to Ortiz Company.Assume that all balance sheet amounts represent both average and ending balance figures.Assume that all sales were on credit. $\begin{array}{lr}\text { Assets }\\\text { Cash and short-term investments } & \$ 45,000 \\\text { Accounts receivable (net) } & 30,000 \\\text { Inventory } & 20,000 \\\text { Property, plant and equipment } & 210,000\\\text { Total Assets }&\$305,000\\\\\text { Liabilities and Stockholders' Equity }\\\text { Current liabilities } & \$ 50,000 \\\text { Long-term liabilities } & 95,000 \\\text { Stockholders' equity-common } & 160,000\\\text { Total Liabilities and Stockholders' Equity }&\$305,000\\\\\text { Income Statement }\\\text { Sales } & \$ 120,000 \\\text { Cost of goods sold } & 66,000\\\text { Gross profit } & 54,000 \\\text { Operating expenses } & 30,000\\\text { Net income }&\$24,000\\\\\text { Number of shares of common stock }&6,000 \\\text { Market price of common stock } &\$20\\\text { Dividends per share }&.50\end{array}$ What is the current ratio for Ortiz?

• A)1.90
• B)1.50
• C)1.30
• D).53

---

Definitions:

Sensory Adaptation

The process by which sensory receptors become less sensitive to constant stimuli, allowing organisms to focus on changes in their environment.

Fire Alarm

A device designed to detect fire or smoke and emit a loud warning sound to alert occupants of potential danger.

Cold Temperature

Refers to lower temperatures that can be naturally occurring or artificially created, often perceived as uncomfortable or requiring physiological adaptation by organisms.

Sensory Adaptation

The process by which sensory receptors become less sensitive over time when exposed to constant stimuli.