Using the Following Balance Sheet and Income Statement Data What

question 92

Multiple Choice

Using the following balance sheet and income statement data what is the current ratio? $$\begin{array}{l}\begin{array} { l r l r } \text { Current assets } & \$ 32,000 & \text { Net income } & \$ 42,000 \\\text { Current liabilities } & 16,000 & \text { Stockholders' equity } & 78,000 \\\text { Average assets } & 160,000 & \text { Total liabilities } & 42,000\end{array}\\\text { Total assets } \quad 120,000\end{array}$$

• A)2.0 : 1
• B)2.6 : 1
• C)0.5 : 1
• D)2.9 : 1

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Definitions:

Lump-sum Merit Pay

A one-time payment given to an employee as a reward for performance, rather than a continuous salary increase.

Base Salary Levels

The foundational rate of pay before bonuses, benefits, or allowances are added, usually determined by role complexity and market rates.

Profit-sharing Plans

Compensation schemes where employees receive a share of the company's profits, typically in the form of bonuses or equity.

Motivational Value

The significance or importance that an individual places on specific outcomes or rewards that help in driving their behavior towards achieving goals.