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Freiman Corporation's Most Recent Balance Sheet and Income Statement Appear

question 250

Multiple Choice

Freiman Corporation's most recent balance sheet and income statement appear below:
$Freiman Corporation's most recent balance sheet and income statement appear below: Income Statement For the Year Ended December 31, Year 2 (in thousands of dollars) \begin{array}{lr} \text { Sales (all on account) }&\$ 1,310 \\ \text {Cost of goods sold. }&780 \\ \text {Gross margin. }&530 \\ \text {Selling and administrative expense }&359 \\ \text {Net operating income }&171 \\ \text {Interest expense }& 35 \\ \text {Net income before taxes }&136 \\ \text { income taxes (30\%) }& 41 \\ \text {Net income }& 95 \end{array} -The current ratio at the end of Year 2 is closest to: A) 0.45 B) 1.93 C) 0.44 D) 1.04$ Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)
$\begin{array}{lr}\text { Sales (all on account) }&\$ 1,310 \\\text {Cost of goods sold. }&780 \\\text {Gross margin. }&530 \\\text {Selling and administrative expense }&359 \\\text {Net operating income }&171 \\\text {Interest expense }& 35 \\\text {Net income before taxes }&136 \\\text { income taxes (30\%) }& 41 \\\text {Net income }& 95\end{array}$
-The current ratio at the end of Year 2 is closest to:

Recognize the role of promissory estoppel in the absence of formal consideration.

Identify exceptions to the consideration requirement.

Analyze the effect of modifications on contracts under various laws.

Understand the implications of contractual promises on legal obligations.

Definitions:

Short Run

A period in economics during which the quantity and quality of one or more production factors remain unchanged.

Market Price

The ongoing price for buying or selling a service or asset.

Profit-Maximizing

A strategy or decision-making process aimed at achieving the highest possible profit from business operations.

Market Price

The existing rate at which merchandise or services are exchanged in a commercial environment.