Montreal Electronics Has the Following Data Available $\text{Current Liabilities:}$

question 64

Multiple Choice

Montreal Electronics has the following data available: $\begin{array}{lll}\text { Current Assets: }&2013&2012\\\text { Cash } & \$ 150 & \$ 57 \\\text { Accounts Receivable } & 95 & 70 \\\text { Accrued Interest Receivable } & 15 & 15 \\\text { Inventory } & 20 & 60 \\\text { Prepaid Rent } & 10 & \ldots\\\text { Total Current Assets } & 290 & \$202\\\end{array}$
$\text{Current Liabilities:}$
$\begin{array} { l l l } \text { Accounts Payable } & \$ 90 & \$ 65 \\\text { Accrued Wages Payable } & 24 & 10 \\\text { Accrued Income Taxes Payable } & 16 & 12 \\\text { Accrued Interest Payable } & 9 & 9 \\\text { Unearned Sales Revenue } & - & 5 \\\text { Current Portion } & & \\\text { of Long-Term Notes Payable } & 80& - \\\text { Total Cument Lizbilities } & \$ 219 & \$ 101\end{array}$
$\text{Long-Term Liabilities:}$
$\begin{array}{lccc}\text { Notes Payable} & 40 & 120\\ \text { Total Liabilities } & \$ 259 & \$ 221 \end{array}$ What is the current ratio for Montreal Electronics in 2013? Has the current ratio improved or not improved since 2012?

• A)2.0,improved
• B)1.3,improved
• C)1.3,not improved
• D)0.5,improved
• E)2.0,not improved

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