The Balance Sheet of YYY Ltd

question 4

Multiple Choice

The Balance Sheet of YYY Ltd. is as follows: ASSETS
Current Assets
Cash $30 000
Accounts receivable $20 000
Raw materials inventory $50 000
Finished goods inventory $600 000
Total current Assets $700 000
Long-Term Assets
Equipment $2 000 000
Buildings $1 100 000
Land $400 000
Total Long-Term Assets $3 500 000
TOTAL ASSETS $4 200 000
LIABILITIES & OWNER'S EQUITY
Current Liabilities
Accounts payable $10 000
Current loans $60 000
Total current liabilities $70 000
Long-Term Liabilities
Long-term loans $900 000
TOTAL LIABILITIES $970 000
Owners' equity
Common stock $2 130 000
Retained Earnings $1 100 000
TOTAL OWNERS' EQUITY $3 230 000
TOTAL LIABILITIES
AND OWNERS' EQUITY $4 200 000
What is the current ratio of this company?

• A)0.43
• B)0.50
• C)2.00
• D)6.00
• E)10.00

---

Definitions:

High Culture

Aspects of culture that are considered the hallmark of sophistication and intellectualism, such as fine arts, classical music, and literature.

Ethnic Fractionalization Index

A measure indicating the likelihood that two randomly selected individuals from a population belong to different ethnic groups, used to assess diversity and potential for conflict.

Open-border Policies

Refers to the approach or policies that allow for unrestricted or minimally restricted cross-border movement of people between countries.

European Union

A political and economic union of 27 European countries that are located primarily in Europe, with policies to ensure free movement of people, goods, services, and capital among the member states.