question 30
Multiple Choice
Comparative financial statements for Cross, Inc.are shown below: Assets Current assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Property, plant and equipment, net Total assets Liabilities and Stockholders’ Equity Current liabilities: Accounts payable Other current liabilities Total current liabilities Long-term debt Total liabilities Stockholders’ equity: Common stock Retained earnings Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity Net sales Cost of goods sold Gross margin Operating expense Operating income Interest expense Earnings before tax Income taxes Net income December 312018$89,103142,00096,70821,203349,014822,576$1.171.590$85,44338,112123,555302,430425,985600,000145,60514,700745,605$1,171,590 Year Ended December 312018$17,005,85212,250,2574,755,5953,585,6571,169,93828,5001,141,438342,431$799,0072017$68,203135,00085,6945,118294,015718,144$1012,159$62,39433,50795,901290,324386,225600,00025,9348,000625,934$1,012,1592017$13,809,5859,825,6143,983,9713,400,258583,71327,300556,413166,924$389,489 How much is Cross' acid-test ratio at the end of 2018?
Definitions:
Public Goods
Goods that are non-excludable and non-rivalrous, meaning their use by one person does not reduce availability to others.
Consumption Goods
Products and services that are consumed by the ultimate consumer and do not serve as input for the production of other goods or services.
Public Goods
Goods that are available for everyone to consume, regardless of whether they pay for them or not, and whose consumption by one individual does not diminish the quantity available to others.
Private Firms
Businesses that are owned, operated, and managed by private individuals or entities rather than by the government or public.