Excerpts from Colter Corporation's Most Recent Balance Sheet Appear Below

question 152

Multiple Choice

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720.The acid-test (quick) ratio at the end of Year 2 is closest to:

• A) 0.72
• B) 0.83
• C) 0.59
• D) 1.25

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Definitions:

Dividend Increase

A rise in the amount of dividends paid out per share by a company to its shareholders.

Stock Price

The cost of purchasing a share of a company, reflecting the company's value as determined by the market.

Industry Booming

A period of rapid and significant growth within a specific industry, often accompanied by increased investment and profitability.

Dividend Reinvestment Plans

Programs allowing investors to reinvest dividends from a corporation into additional shares of that corporation's stock, often without commissions.