Using the Following Year-End Information for Calvin's Clothing, Calculate the Current

question 244

Multiple Choice

Using the following year-end information for Calvin's Clothing, calculate the current ratio and acid-test ratio for the business: $$\begin{array} { l r } \text { Cash } & \$ 52,000 \\\text { Short-term investments } & 12,000 \\\text { Accounts receivable } & 54,000 \\\text { Inventory } & 325,000\end{array}$$ $$\begin{array} { l r } \text { Prepaid expenses } & 17,500 \\\text { Accounts payable } & 106,500 \\\text { Other current payables } & 25,000\end{array}$$

• A) 1.97 and 1.52
• B) 1.80 and 0.90
• C) 3.50 and 0.90
• D) 1.80 and 1
• E) 2.73 and 1.52

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Definitions:

Visuals and Data Displays

The use of graphical elements such as charts, graphs, and images to present data and information clearly and effectively.

Final Presentation

The last detailed display or demonstration of a project's outcomes before an audience, usually marking the conclusion of a project.

Board of Directors

A group of individuals elected by shareholders to oversee the management and make major decisions for a corporation.

Visuals and Data Displays

Graphics, charts, maps, and other visual aids that represent information or data in an easily interpretable form.