Use the Following Data to Answer Questions 33-34 -To Two Decimals, Power Corp

question 5

Multiple Choice

Use the following data to answer questions 33-34.
Power Corp. reported the following data for calendar 2020: $\begin{array}{llr} \text { Total assets} &\$625,000\\ \text {Current assets } &325,000\\ \text { Total liabilities } &300,000\\ \text { Long-term liabilities} &145,000\\ \text { Inventories, Dec 31/19 } &110,000\\ \text { Inventories, Dec \( 31 / 20 \) } &100,000\\ \text { Net sales. } &1,550,000\\ \text { Gross profit} &920,000\\ \text { Net income} &205,000\end{array}$

-To two decimals, Power Corp.'s current ratio for 2020 is

• A) 1.08.
• B) 2.10.
• C) 2.08.
• D) 0.92.

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Definitions:

Units-Of-Production

A depreciation method that allocates cost based on the units produced by an asset over its useful life.

Depreciation Method

A systematic approach used to reduce the carrying amount of a tangible or intangible asset over its useful life.

Level Of Use

Level of use refers to the degree or extent to which a resource, service, or facility is utilized.

Salvage Value

The estimated residual value of an asset at the end of its useful life.