The Financial Statements of Weston Office Supply Include the Following

question 144

Multiple Choice

The financial statements of Weston Office Supply include the following items: $$\begin{array} { l r r } & 2017 & 2016 \\\text { Cash } & \$ 43,500 & \$ 50,000 \\\text { Short-term Investments } & 27,000 & 17,000 \\\text { Net Accounts Receivable } & 102,000 & 97,000 \\\text { Merchandise Inventory } & 125,000 & 119,000 \\\text { Total Assets } & 527,000 & 554,000 \\\text { Total Current Liabilities } & 251,000 & 242,000 \\\text { Long-term Note Payable } & 59,000 & 51,000 \end{array}$$ What is 2017 current ratio? (Round your answer to two decimal places. )

• A)0.84
• B)0.56
• C)1.19
• D)1.70

Understand the concept and implications of cross-price elasticity of demand.

Recognize the effects of changes in supply and demand on market equilibrium prices and quantities.

Identify and analyze the impact of external factors on supply and demand.

Calculate and interpret cross-price elasticity of demand using given data.

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Definitions:

Ending Inventory Policy

A company's method for valuing goods remaining unsold at the end of an accounting period.

Variable Overhead

Refers to the manufacturing overhead costs that vary in direct proportion with production volume, such as utilities and materials used in production.

Purchases Budget

A financial plan that estimates the amount of goods a company needs to buy to meet its production and sales goals.