Using the Following Year-End Information for Bauman, LLC, Calculate the Current

question 247

Multiple Choice

Using the following year-end information for Bauman, LLC, calculate the current ratio and acid-test ratio: $$\begin{array} { l r } \text { Cash } & \$ 48,000 \\\text { Short-term investments } & 12,000 \\\text { Accounts receivable } & 45,000 \\\text { Inventory } & 225,000 \\\text { Prepaid expenses } & 12,500 \\\text { Accounts payable } & 86,500 \\\text { Other eurrent payables } & 22,000\end{array}$$

• A) 3.01 and 1.21
• B) 3.16 and 1.21
• C) 3.04 and 1.21
• D) 3.16 and .97
• E) 1.09 and 4.77

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Definitions:

Marijuana

A psychoactive drug from the Cannabis plant used for medical or recreational purposes.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include delusions, hallucinations, and disorganized thinking.

Psychoactive Drugs

Substances that affect the mind, mood, and other mental processes by altering brain function.

Neurotransmitters

Chemical substances that transmit signals across a synapse from one neuron to another, playing a key role in the functioning of the nervous system.