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:

Property

A broad term encompassing ownership rights over goods, land, intellectual property, and other tangible or intangible assets.

RUPA

The Revised Uniform Partnership Act, which is a set of laws designed to govern the operation of partnerships in the United States.

Exclusivity

A contractual agreement where one party grants another party sole rights regarding a specific business function, product, or service.

Codify

The process of collecting and systematizing laws, rules, or regulations into a code or coherent system.