Use the Selected Data from Pinecrest Company's Financial Statements to Answer

question 140

Multiple Choice

Use the selected data from Pinecrest Company's financial statements to answer the following question. $$\begin{array} { l r r } & \underline { 2017 } & \underline { 2016 } \\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses }& \underline { 23,000 } & \underline { 18,000 } \\\text { Total current assets } & \underline { \mathbf { \$ 1 0 9 , 0 0 0 } } & \underline { \mathbf { \$ 1 3 1 , 0 0 0 } } \\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}$$ ​
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-Refer to the data for Pinecrest Company. The current ratio for 2017 is

• A) 0.60 to 1
• B) 0.99 to 1
• C) 1.34 to 1
• D) 1.68 to 1

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Definitions:

Ethical Theories

Philosophical frameworks designed to guide decision-making by proposing various principles and values for distinguishing right from wrong.

Utilitarian Theory

A moral philosophy that emphasizes the greatest happiness for the greatest number, often used in decision-making processes.

Societal Utility

The degree to which something meets the needs and contributes to the well-being or benefit of society.

Means of Production

The physical and non-physical inputs used in the production of goods and services, such as factories, machinery, and labor.