As of December 31,Year 1,Gant Corporation Had a Current Ratio

question 121

Multiple Choice

As of December 31,Year 1,Gant Corporation had a current ratio of 1.29,quick ratio of 1.05,and working capital of $18,000.The company uses a perpetual inventory system and sells merchandise for more than it cost.On January 1,Year 2,Gant issued common stock at par value for $10,000 cash.Which of the following statement is correct?

• A) Gant's current ratio will decrease.
• B) Gant's current ratio will increase.
• C) Gant's quick ratio will decrease.
• D) Gant's working capital will decrease.

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Definitions:

SELL Sequence

A series of steps in the selling process, often acronymized to Show features, Explain advantages, Lead into benefits, and Let the customer speak.

Sales Presentation

A formal discussion or demonstration aimed at persuading an audience to purchase a product or service, focusing on features, benefits, and value.

Consumer Objections

Concerns or hesitations that a customer expresses regarding a product or service, often stemming from perceived risks, pricing, or doubts about value.

Wi-series Mobile Phone

A line or category of mobile phones, possibly referring to specific models by a manufacturer, designed with certain unique features or targeted at a specific market segment. Note: The term "Wi-series" does not correspond to a widely recognized series as of my last update.