The Following Information Is Available for Lowell Company Total Current Liabilities Are $80,000

question 24

Multiple Choice

The following information is available for Lowell Company: $$\begin{array} { | l | r | } \hline \text { Current Assets } & \\\hline \text { Cash } & \$ 4,000 \\\hline \text { Marketable securities } & 75,000 \\\hline \text { Accounts receivable } & 61,000 \\\hline \text { Inventories } & 110,000 \\\hline \text { Prepaid expenses } & \underline { 30,000 } \\\hline \text { Total current assets } & \$ 280,000 \\\hline\end{array}$$ Total current liabilities are $80,000. The quick ratio for Lowell is

• A) 1.75
• B) 2.13
• C) 3.25
• D) 1.3

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Definitions:

Oligopoly

A market configuration where a few companies have substantial influence over the pricing and competitive landscape.

Large Firms

Companies that are considerable in size, often having extensive operations, large revenues, and many employees, playing significant roles in their industries.

Price Leadership

A strategy where the dominant firm in a market sets the price of goods or services, and other competitors in the market follow suit.

Automobiles

Motor vehicles designed for transporting passengers on roads.