Using the Following Year-End Information for Bauman, LLC, Calculate the Current

question 58

Multiple Choice

Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio: $\begin{array}{lr}\text { Cash } & \$ 48,000 \\\text { Short-term investments } & 12,000 \\\text { Accounts receivable } & 45,000 \\\text { Inventory } & 225,000 \\\text { Prepaid expenses } & 12,500 \\\text { Accounts payable } & 86,500 \\\text { Other current payables } & 22,000\end{array}$

• A)3.01 and 1.21
• B)3.16 and 1.21
• C)3.04 and 1.21
• D)3.16 and .97
• E)1.09 and 4.77

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Definitions:

Lag Time

The delay between the initiation of a process and the occurrence of its effects, often seen in natural and engineered systems.

Kyoto Protocol

An international treaty that commits state parties to reduce greenhouse gas emissions, based on the premise that global warming exists and human-made CO2 emissions have caused it.

Withdraw Support

The act of stopping the provision of help, resources, or endorsement previously given to an individual, group, or project.

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