A Corporation Reports the Following Year-End Balance Sheet Data A) 037
B) 0

question 158

Short Answer

A corporation reports the following year-end balance sheet data. The company's current ratio equals: $\begin{array}{lrlr}\text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\text { Inventory } & 60,000 & \text { Common stock } & 100,000\\\text { Equipment }&145,000&\text { Retained earnings }&90,000\\\text { Total assets }&\$300,000&\text { Total liabilities and equity }&\$300,000\\\end{array}$
A) 0.37
B) 0.58
C) 0.63
D) 1.27
E) 2.07

• A) 0.37
• B) 0.58
• C) 0.63
• D) 1.27
• E) 2.07

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Definitions:

Linear Relationship

Relationship between variables appropriately represented by a straight line.

Yerkes-Dodson Law

A theory suggesting that there is an optimal level of arousal for the best performance on any task; too little or too much arousal can impair performance.

Arousal

A physiological and psychological state of being awake or reactive to stimuli.

Inferential

Inferential statistics involve techniques that allow conclusions to extend from a sample to a population, based on probability.