The Following Data Represent Selected Information from the Comparative Income

question 50

Multiple Choice

The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31, 2014 and 2013: • 10,000 shares of common shares have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2013, and they were selling for $91.50 on December 31, 2014.
Refer to the table above. The current ratio for Hot Rolled Corporation on December 31, 2014, was:

• A) 0.80
• B) 0.67
• C) 1.45
• D) 1.26

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Definitions:

Corporation

A legal entity (“person”) chartered by a state or the federal government that is distinct and separate from the individuals who own it.

Personal Responsibility

The idea that an individual is accountable for their actions and wellbeing, including making decisions that affect their life and those around them.

Circular Flow Model

A diagram that demonstrates the movement of money, resources, and goods and services in an economy between households, firms, and the government.

Resource Markets

Marketplaces where resources (like labor, capital, and raw materials) used to produce goods and services are bought and sold.