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. $$\begin{array} { l r r } & \underline { 2017 } & \underline { 2016 } \\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses }& \underline { 23,000 } & \underline { 18,000 } \\\text { Total current assets } & \underline { \mathbf { \$ 1 0 9 , 0 0 0 } } & \underline { \mathbf { \$ 1 3 1 , 0 0 0 } } \\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}$$ ​
​
-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

---

Definitions:

Natural Resource Base

The foundational elements provided by the natural environment that support human society and economic activities, including water, soil, minerals, and forests.

Cost-Benefit Analysis

A systematic approach to estimating the strengths and weaknesses of alternatives used to determine options which provide the best approach to achieve benefits while preserving savings.

Economically Efficient

A situation where resources are allocated in a way that maximizes the net benefit to society or minimizes wastage.

Environment Damaged

A state where natural habitats are compromised due to pollution, deforestation, or other harmful human activities.