A Corporation Reports the Following Year-End Balance Sheet Data A) 058
B) 1

question 196

Multiple Choice

A corporation reports the following year-end balance sheet data.The company's current ratio equals:
$$\begin{array} { l r l r } \text { Cash } & \$ 40,000 & \text { Current liabilities } & \$ 75,000 \\\text { Accounts receivable } & 55,000 & \text { Long-term liabilities } & 35,000 \\\text { Inventory } & 60,000 & \text { Common stock } & 100,000 \\\text { Equipment } & 145,000 & \text { Retained earnings } & 90,000 \\\text { Total assets } & \$ 300,000 & \text { Total liabilities and equity } & \$ 300,000\end{array}$$

• A) 0.58
• B) 1.27
• C) 2.07
• D) 0.37
• E) 0.63

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Definitions:

Perfect Square

A number that is the square of an integer, meaning it can be expressed as the multiplication of an integer by itself.

Perfect Cube

A number that can be expressed as the cube of an integer.

Neither

Indicates a situation or condition where none of the specified alternatives or options apply.

Cube Roots

The number that when multiplied by itself twice gives the original number. Symbolically, the cube root of \(x\) is \(x^{1/3}\).