The Following Balance Sheet Information Is Provided for Greene Company

question 124

Multiple Choice

The following balance sheet information is provided for Greene 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 quick (acid-test) ratio?

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Definitions:

Unionism

The principles, practices, or system of forming, joining, and operating trade unions to protect and improve workers' rights and conditions.

Equity

A principle of fairness in treatment and distribution of resources, or ownership interest in a company through shares.

United Farm Workers

A labor union for farmworkers in the United States that advocates for improved working conditions, wages, and benefits for agricultural workers.

Nationwide Boycotts

Organized refusal to buy or use products and services across an entire country to protest policies or practices considered objectionable.