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:

SWOT Analysis

A strategic planning tool used to identify Strengths, Weaknesses, Opportunities, and Threats related to business competition or project planning.

Weaknesses

Internal factors or characteristics that reduce an organization's ability to achieve its objectives effectively.

Middle Managers

Individuals within an organization responsible for managing the efforts of a group of employees and implementing the policies and plans from higher management.

Derail Strategies

Tactics or plans that are intended to disrupt or obstruct a competing strategy, often in a business or competitive context.