Data from Dunshee Corporation's Most Recent Balance Sheet Appear Below

question 50

Multiple Choice

Data from Dunshee Corporation's most recent balance sheet appear below:
$\begin{array}{lrr}&\text { Year 2 } & \text { Year 1 } \\\text { Current assets: }\\\text { Cash}&\$ 130 & \$ 100 \\\text { Accounts receivable, net.}&270 & 290 \\\text {Inventory }&90 & 110 \\\text {Prepaid expenses }&10 & 10\\\text { Total current assets. }&\$500&\$510\\\text { Total current liabilities }&\$230&\$220\end{array}$ Sales on account in Year 2 amounted to $1,170 and the cost of goods sold was $730.
-The current ratio at the end of Year 2 is closest to:

• A) 0.38
• B) 2.17
• C) 0.94
• D) 0.40

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Definitions:

Annexation

The act of a state unilaterally incorporating another territory within its domain, often without the explicit consent of the affected territory's populace.

Hawaiian Islands

An archipelago in the central Pacific Ocean and a state of the United States, known for its diverse natural scenery, warm tropical climate, and unique cultures.

Queen Liliuokalani

The last reigning monarch of the Kingdom of Hawaii, who was overthrown in 1893 in a coup backed by U.S. interests, leading to the eventual annexation of Hawaii by the United States.

Maine

A state in the northeastern United States, known for its scenic coastlines, lighthouses, and as a major producer of lobsters and blueberries.