A Retailer Has $300,000 in Cash,$500,000 in Accounts Receivable,$1,000,000 in Inventories,$400,000

question 93

Multiple Choice

A retailer has $300,000 in cash,$500,000 in accounts receivable,$1,000,000 in inventories,$400,000 in marketable securities,and $2,000,000 in total current liabilities.What is its current ratio?

• A) 0.15
• B) 0.40
• C) 1.100
• D) 1.375

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Definitions:

Inputs Prices

Prices of goods or services that are used in the production of other goods or services.

Profit-maximizing

The process or strategy of adjusting production and sale operations to achieve the highest possible profit.

Least-cost Combination

An economic principle where businesses aim to produce a given level of output at the minimum possible cost by appropriately combining resources.

Inputs

Resources such as labor, materials, and capital that are used in the production process to create goods or provide services.