At the End of Last Year, a fiRm Had a Current

question 227

Multiple Choice

At the end of last year, a firm had a current ratio of 1.4, net fixed assets of $2,500, notes payable of $0, and total assets of $5,100. Based on pro forma sales, current liabilities will increase by $500
And current assets will increase by $900. By how much can notes payable increase on the pro
Forma statement without changing the current ratio?

• A) $0
• B) $143
• C) $400
• D) $667
• E) $760

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Definitions:

Delusion

A false belief or judgment, often of a paranoid or grandiose nature, that is maintained despite being contradicted by reality or rational argument.

Reincarnation

The belief that the soul, after death, can begin a new life in a new body, a concept found in various religious and philosophical traditions.

Delusion

A strongly held belief that contradicts reality or rational argument, often a symptom of psychiatric disorders.

Believes

Believes refers to accepting something as true or real, often without tangible proof, based on trust, faith, or confidence in a person, idea, or statement.