MEGAFRAME COMPUTER COMPANY
Balarce Sheet
as of Decermber 31 MEGAFRAME COMPUTER COMPANY
Income Staternent
for the Year Ended Decernber

question 73

Multiple Choice

MEGAFRAME COMPUTER COMPANY
Balarce Sheet
As of Decermber 31
$\begin{array}{lr}\text { ASSETS } \\\text { Cash } & \$ 50,000 \\\text { Accounts receivable } & 70,000 \\\text { Inventory } & 110,000 \\\text { Net plant and equipment } & 220,000\\\text { Total assets }&\$450,000\\\\\text { LIABIITES AND STOCKHOLDERS' EQUTTY }\\\text { Accounts payable } & \$ 0,000 \\\text { Accrued expenses } & 50,000 \\\text { Long-term debt } & 130,000 \\\text { Common stock } & 70,000 \\\text { Paid-in capital } & 40,000 \\\text { Retained earnings } & 90,000\\\text { Total liabilities and stockholders' equity }&\$450,000\end{array}$
MEGAFRAME COMPUTER COMPANY
Income Staternent
For the year ended Decernber 31
$\begin{array}{ll}\text { Sales (all on credit) }&\$875,000\\\text { Cost of goods sold }&600,000\\\text { Gross profit }&\$275,000\\\text { Sales and administrative expenses }&30,000\\\text { Depreciation }&55,000\\\text { Operating profit }&\$190,000\\\text { Interest expense }&25,000\\\text { Profit before taxes }&\$165,000\\(\text { Taxes (30\%) }&49,000\\\text { Net income }&\$115,500\\\end{array}$

Refer to the tables above. Megaframe's quick ratio is ________.

• A) 1.9:1
• B) 1:1
• C) 1.8:1
• D) 12:1

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Definitions:

Genus

In biology, the rank in the classification hierarchy that is above species and below family, used to group species that share common characteristics.

Writing Utensil

An instrument or tool used for writing, such as a pen, pencil, marker, or stylus.

Handheld

A term often used to describe a small, portable device that can be held and operated in the hands.

Genera

The plural of genus, referring to a category of classification in biology that ranks above species and below family, grouping together species with common features.