Data from Dunshee Corporation's Most Recent Balance Sheet Appear Below

question 279

Multiple Choice

Data from Dunshee Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.The current ratio at the end of Year 2 is closest to:

• A) 0.38
• B) 2.17
• C) 0.94
• D) 0.40

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Definitions:

Investing Activities

Transactions involving the acquisition and disposal of long-term assets and other investments not considered as cash equivalents.

Book Value

The net value of a company's assets as recorded on its financial statements, subtracting liabilities from the total assets.

Indirect Method

A way of calculating cash flows in the cash flow statement where net income is adjusted for changes in balance sheet items to calculate operating cash flows.

Statement Of Cash Flows

A financial document that presents the effects of changes in income and balance sheet items on cash and cash equivalents, categorized into the areas of operating, investing, and finance.