Below Is Selected Information from Marker's 2012 Financial Statements $\text { Selected Income Statement Data - for the year ending December 31, 2012: }$

question 41

Multiple Choice

Below is selected information from Marker's 2012 financial statements:
$\begin{array}{lrr}&\text { As of Dec.31, } 2012&\text { Dec. 31, } 2011\\\text { Cash and short-term investments } & \$ 958,245 & \$ 745,800 \\\text { Accounts Receivable (net) } & 125,850 & 135,400 \\\text { nventories } & 195,650 & 175,840 \\\text { Prepaid Expenses and other current assets } & 45,300 & 30,860\\{\text { Total CurrentAssets }} & \$ 1,325,045 & \$ 1,087,900 \\\text { Plant, Property and Equipment, net } & 1,478,320 & 1,358,700 \\\text { Intangible Assets } & 125,600 & 120,400 \\\text { Total Assets }& \$ 2,928,965&\$ 2,567,000 \\\\ \\\text { Short-term borrowings } & \$ 25,190 & \$ 3,108 \\\text { Current portion of long-term debt } & 45,000 & 40,000 \\\text { Accounts payable } & 285,400 & 325,900 \\\text { Accrued liabilities } & 916,722 & 705,89 \\\text { ncome taxes payable } & 125,400 & 115,600\\\text { Total Current Liabilities } & \$ 1,397,712 & \$ 1,225,499 \\\text { Long-term Debt } & 450,000 & 430,000 \\\text { Total Liabilities } & \$ 1,847,712 & \$ 1,655,499 \\\text { Shareholders' Equity } & \$ 1,081,253 & \$ 911,501\\\text { Total Liabilities and Shareholders' Equity}&\$ 2,928,965 & \$ 2,567,000 \\\end{array}$


$\text { Selected Income Statement Data - for the year ending December 31, 2012: }$
$\begin{array}{l}\begin{array}{l}\text { Net Sales } \\\text { Cost of Goods Sold } \\\text { Operating Income }\\\text { Net Income }\end{array}\begin{array}{r}\$ 3,210,645 \\(2,310,210) \\\$ 900,435\\\$ 324,850\end{array}\end{array}$


$\text { Selected Statement of Cash Flow Data - for the year ending December } 31,2012 \text { : }$
$\begin{array}{l}\begin{array}{lll}\text {Cash Flows from Operations }\\\text {interest Expense }\\\text {Income Tax Expense}\end{array}\begin{array}{lll}\$ 584,750 \\42,400 \\114,200\end{array}\end{array}$
-Marker's 2012 Interest Coverage ratio is:

• A) 7.66
• B) 1.00
• C) 11.35
• D) 4.35

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Definitions:

Horns Error

A type of cognitive bias in which a person's negative traits influence one's perception of their overall character or abilities, leading to an unduly harsh evaluation.

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Calibration Meetings

Sessions in which managers or HR professionals discuss and align on performance standards, ratings, and development needs for employees to ensure consistency and fairness.

Performance Appraisal

The evaluation process by which an employee's job performance is assessed and documented by a manager or supervisor.