The Following Balance Sheet Information Is Provided for Duke Company

question 119

Multiple Choice

The following balance sheet information is provided for Duke Company for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 5,600 \\\text { Accounts receivable } & 11,750 \\\text { Inventory } & 14,800 \\\text { Prepaid expenses } &1,600 \\\text { Plant and equipment, net of depreciation } & 19,500 \\\text { Land } & \underline{ 13,400 }\\\text { Total assets } &\underline{ \$ 66,650}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$2,790 \\\text { Salaries payable } &8,230 \\\text { Bonds payable (Due in ten years) } & 12,000 \\\text { Common stock, no par } & 16,500 \\\text { Retained earnings } &\underline{ 27,130} \\\text { Total liabilities and stockholders' equity }& \$66,650\end{array}$ What is the company's current ratio? (Round your answer to 2 decimal places.)

• A) 1.40
• B) 1.57
• C) 3.06
• D) 0.75

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Definitions:

Tardive Dyskinesia

A neurological syndrome characterized by repetitive, involuntary, purposeless movements caused by long-term use of certain psychiatric drugs.

Second Generation Antipsychotics

A class of medications used to treat psychiatric conditions; known for their lower risk of causing motor side effects compared to first-generation antipsychotics.

Schizophrenia

A severe mental disorder characterized by distortions in thinking, perception, emotions, language, sense of self, and behavior.

Dopamine

A neurotransmitter involved in many functions, including mood, motivation, reward, and the regulation of movement.