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

question 30

Multiple Choice

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

• A)2)0,not improved
• B)1)2,not improved
• C)1)3,improved
• D)1)1,improved

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Definitions:

Celler-Kefauver Act

A U.S. law enacted in 1950 to amend the Clayton Act, aiming to prevent anti-competitive mergers and acquisitions by prohibiting the acquisition of assets if the effect reduces competition.

Mergers

The combination of two or more companies into one entity, often to enhance market share and reduce competition.

Celler-Kefauver Act

A U.S. law enacted in 1950, aimed at preventing anti-competitive mergers and acquisitions that could create monopolies or reduce competition.

Clayton Act

A U.S. antitrust law enacted in 1914, aimed at preventing anticompetitive practices, such as price discrimination and monopolies, not covered by the Sherman Act.