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:

Event Will Not Occur

The probability that a specific event does not happen, which can be calculated by subtracting the event’s probability of occurring from 1.

Conditional Probability

The likelihood of one event happening after another event has already taken place.

Independent Events

Events whose occurrence or outcome is not influenced by one another; the outcome of one event does not affect the outcome of another.

Mutually Exclusive Events

Two or more events that cannot occur at the same time within a given experimental setup.