RBW CorpHas Cash of $48,000; Short-Term Notes Payable of $35,000,accounts Receivable

question 88

Multiple Choice

RBW Corp.has cash of $48,000; short-term notes payable of $35,000,accounts receivable of $100,000; accounts payable of $120,000; inventories of $200,000; and accruals of $90,000.What is RBW's current ratio?

• A) 1.57
• B) 2.71
• C) 1.42
• D) 0.64

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Definitions:

Interest Free

A loan or credit arrangement where the borrower is not required to pay any interest on the borrowed amount.

Consolidated Balance Sheet

A financial statement that aggregates the financial positions of a parent company and its subsidiaries, presenting as if the group were a single entity.

Dividends

Distributions from a company to its shareholders, representing the earnings of the corporation that are distributed among its stockholders.

Consolidated Balance Sheet

A financial statement presenting the assets, liabilities, and shareholders' equity of a parent company and its subsidiaries as one entity.