Use the Following to Answer Questions
Big Deer Industries Gathered $2010 \quad 2009$

question 20

Multiple Choice

Use the following to answer questions
Big Deer Industries gathered the following year-end data (in thousands) for 2010 and 2009:
                                                        $2010 \quad 2009$
$\begin{array}{lrr}\text { Current Assets } & \$ 450 & \$ 500 \\\text { Long-Term Assets } & 810 & 620 \\\text { Current Liabilities } & 310 & 420 \\\text { Long-Term Liabilities } & 500 & 610 \\\text { Owners' Equity } & 500 & 300 \\\text { Net Sales } & 900 & 810 \\\text { Gross Margin } & 410 & 400 \\\text { Net Tncome } & 180 & 13\end{array}$
-The current ratio at the end of 2010 was:

• A)1.76
• B)1.56
• C)1.45
• D)1.03

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Definitions:

Net Debt

The amount obtained by subtracting a company's total liabilities from its liquid assets.

Amortization Expense

The periodic expense recognized in the financial statements as the cost of an intangible asset is systematically allocated over its useful life.

Statement Of Cash Flows

A financial report that summarizes the amount of cash and cash equivalents entering and leaving a company.

Direct Method

A cash flow statement presentation method that enumerates major categories of gross cash receipts and payments.