On December 31, the Cornerstone Company Reported the Following Information

question 21

Multiple Choice

On December 31, the Cornerstone Company reported the following information on its financial statements. $$\begin{array} { l r } \text { Total current assets } & \$ 1,020,000 \\\text { Total long-ter m assets } & \$ 2,775,000 \\\text { Total cur rent liabilities } & \$ 735,000 \\\text { Total long-term debt } & \$ 1,462,500\end{array}$$ According to this information, the company's current ratio is approximately

• A) 0.72.
• B) 1.39.
• C) 1.73.
• D) 1.90.

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Definitions:

Melancholic

A temperament characterized by deep, pensive sadness or contemplation, often connected to artistic or creative endeavors.

Phlegmatic

A temperament characterized by a calm, reliable, and even-keeled personality, often associated with a high threshold for emotional excitability.

Sanguine

Characterized by optimism or a positive attitude, especially in an apparently bad or difficult situation.

Self-Efficacy

An individual's belief in their capacity to execute behaviors necessary to produce specific performance attainments.