Pinecrest Company
Use the Selected Data from Pinecrest Company's Financial

question 153

Multiple Choice

Pinecrest Company
Use the selected data from Pinecrest Company's financial statements to answer the following question.
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$\begin{array}{lrr}&2018&2017\\\text { Cash } & \$ 22,000 & \$ 14,000 \\\text { Accounts receivable } & 42,000 & 16,000 \\\text { Merchandise inventory } & 22,000 & 83,000 \\\text { Prepaid expenses } & 23,000 & 18,000 \\\text { Total current assets } & \$ 109,000 & \$ 131,000\\\\\text { Total current liabilities } & \$ 65,000 & \$ 72,000 \\\text { Net credit sales } & 221,000 & 326,000 \\\text { Cost of goods sold } & 168,000 & 299,000 \\\text { Net cash flow from operating activities } & 16,000 & 29,000\end{array}$ ​
-Refer to the data for Pinecrest Company. The current ratio for 2018 is

• A)0.60 to 1.
• B)0.99 to 1.
• C)1.34 to 1.
• D)1.68 to 1.

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Definitions:

Barbiturates

A class of drugs used as sedatives and hypnotics, which can depress the central nervous system, leading to various effects from mild sedation to complete anesthesia.

Cocaine

An illicit narcotic with central nervous system stimulant effects, widely abused for its euphoric effects and potential for addiction.

Caffeine

A stimulant commonly found in coffee, tea, and other beverages, known for enhancing alertness and temporarily warding off drowsiness.

Caffeine

A stimulant found in coffee, tea, and various sodas and energy drinks, known for its ability to temporarily ward off drowsiness and restore alertness.