What Is the Current Ratio If Cash Is $10,000,accounts Receivable

question 20

Multiple Choice

What is the current ratio if cash is $10,000,accounts receivable are $25,000,inventories are $30,000,accounts payable are $40,000,and accrued payroll is $15,000?

• A) 2.00
• B) 1.18
• C) 1.13
• D) 0.64
• E) 0.73

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Definitions:

Markup

The amount added to the cost of goods to cover overhead and profit, usually expressed as a percentage of the cost.

Discontinued Inventory

Discontinued inventory includes products that are no longer being produced or sold by a company, often due to obsolescence or strategy shifts.

Gross Profit Margin

A profitability metric that shows the percentage of revenue that exceeds the cost of goods sold, indicating the efficiency in producing goods.