question 37
Multiple Choice
Scenario: Pettijohn Inc.The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $ ) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity Total liabilities and equity 2007$1,554.09,660.013,440.0$24,654.017,346.0$42,000.0$7,980.05,880.04,620.0$18,480.010,920.0$29,400.03,360.09,240.0$12,600.0$42,000.0 Income Statement (Millions of $ ) Net sales Operating costs except depr’n Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends Interest rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2007$58,800.00$54,978.0$1,029.0$2,793.01,050.0$1,743.0$610.1$1,133.0175.00$509.836.25%35%$77.69
-Refer to Scenario: Pettijohn Inc.What is the firm's current ratio?
Definitions:
Lower Volta
A region in Ghana, characterized by the Volta River's lower part, significant for its hydroelectric projects and agriculture.
Aggregate Production
The total output of goods and services produced by an economy over a specific time period.
Net National Product
The total market value of all final goods and services produced by the residents of a country in a given time period, minus depreciation.
Real GDP
Gross Domestic Product adjusted for inflation, measuring the value of goods and services produced by a country in real terms.