Jobston,Inc ​
-Read the Information About Jobston,Inc

question 163

Multiple Choice

Jobston,Inc.
The balance sheet of Jobston Inc.includes the following items:
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$\begin{array}{lr}\text { Cash } & \$ 22,400 \\\text { Accounts receivable } & 11,700 \\\text { Inventory } & 23,300 \\\text { Prepaid insurance } & 1,040 \\\text { Land } & 80,000 \\\text { Accounts payable } & 47,500 \\\text { Salaries payable } & 1,200 \\\text { Capital stock } & 84,040 \\\text { Retained earnings } & 5,700\end{array}$ ​
-Read the information about Jobston,Inc.What is Jobston's current ratio?

• A)0.8 to 1
• B)1.6 to 1
• C)1.2 to 1
• D)2.5 to 1

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Definitions:

Net Sales

Net sales are the amount of revenue generated from sales activities after deducting returns, allowances for damaged or missing goods, and any discounts allowed.

Net Income

The total earnings of a company after subtracting all expenses, including taxes and interest, from its total revenue.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account columns to ensure a company's bookkeeping system is mathematically correct.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, leading to net income or loss.