The Following Balance Sheet Information Is Provided for Duke Company

question 20

Multiple Choice

The following balance sheet information is provided for Duke Company for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 5,400 \\\text { Accounts receivable } & 15,500 \\\text { Inventory } & 18,000 \\\text { Prepaid expenses } & 1,600 \\\text { Plant and equipment, net of depreciation } & 20,200 \\\text { Land } & \underline{ 19,950 }\\\text { Total assets } &\underline{ \$ 80,650}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$ 4,500 \\\text { Salaries payable } & 11,500 \\\text { Bonds payable (Due in ten years) } & 19,000 \\\text { Common stock, no par } & 30,000 \\\text { Retained earnings } &\underline{ 15,650} \\\text { Total liabilities and stockholders' equity }& \$ 80,650\end{array}$
What is the company's current ratio? (Round your answer to 2 decimal places.)

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Definitions:

Bone Atrophy

The loss or thinning of bone tissue, often due to lack of use or hormonal changes.

Fluid Around The Joint

Refers to the accumulation of excess fluid in or around a joint, often leading to swelling and sometimes pain or restricted movement.

Epicondylitis

An inflammation of the tendons that attach to the elbow, commonly known as tennis elbow or golfer's elbow, causing pain and tenderness.

Pain

A disagreeable feeling and emotional response that comes with either real or possible harm to the body.