The Following Information Relates to Bonny Unlimited for the Past

question 115

Multiple Choice

The following information relates to Bonny Unlimited for the past two years. $\begin{array}{|l|l|l|}\hline \text { Account } & \text { Current year } & \text { Prior year } \\\hline \text { Net sales (all credit) } & \$ 250,000 & \$ 180,000 \\\hline \text { Cost of goods sold } & \$ 115,000 & \$ 110,000 \\\hline \text { Gross profit } & \$ 135,000 & \$ 70,000 \\\hline \text { Income from operations } & \$ 32,000 & \$ 30,000 \\\hline \text { Interest expense } & \$ 4,000 & \$ 7,000 \\\hline \text { Net income } & \$ 24,000 & \$ 18,000 \\\hline \text { Cash } & \$ 16000 & \$ 14000\\\hline \text { Accounts receivable, net } & \$ 20,000 & \$ 31,000 \\\hline \text { Inventory } & \$ 52,000 & \$ 44,000 \\\hline \text { Prepaid expenses } & \$ 2,000 & \$ 1,000 \\\hline \text { Total current assets } & \$ 90,000 & \$ 90,000 \\\hline \text { Total long-term assets } & \$ 100,000 & \$ 120,000 \\\hline \text { Total current liabilities } & \$ 60,000 & \$ 90,000 \\\hline \text { Total long-term liabilities } & \$ 22,000 & \$ 78,000\\\hline\text { Common stock, no par, } & \$ 40,000 & \$ 40,000 \\2,000 \text { shares, market value } \$ 90 \text { per share } & &\\\hline\text {Retained earnings}&\$68,000&\$2,000\\\hline\end{array}$
- What is the times-interest-earned ratio for the current year?

• A)7.00 times
• B)1.50 times
• C)4.00 times
• D)2.40 times

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Definitions:

Inappropriately Touches

The act of touching another person without consent, often in a sexual manner that is considered offensive or improper.

Physical Closeness

The proximity and tactile interaction between individuals, often leading to psychological and emotional bonding.

Sexual Predation

The act of engaging in unwanted or aggressive sexual behavior towards others, often exploiting power dynamics or the vulnerability of the victim.

Sexual Response

The series of physical and emotional changes that occur as a person becomes sexually aroused and participates in sexually stimulating activities.