The Collander Company Reports the Following Information What Is the Current Ratio at December 31,2012?
A) 0

question 16

Multiple Choice

The Collander Company reports the following information:
$\begin{array} { l } \text {Sales for the year ended December 31,2012 }&\$106,950\\ \text {Gross profit for the year ended December 31, 2012 }&\$45,150\\ \text { Net income for the year ended December 31,2012}&\$7,300\\ \text {Total Current Assets, December 31, 2012 }&\$18,700\\ \text {Total Current Liabilities, December 31, 2012 }&\$5,600\\ \text {Total Assets, December 31, 2012 }&\$48,400\\ \text {Total Liabilities, December 31,2012 }&\$20,850\\ \text { Total common shares outstanding, December 31, 2012}&\$1,000\\ \text {Market price per share, December 31, 2012 }&\$75.00\\ \text {Dividends per share, for the year ended December 31,2012 }&\$5.00\\\end{array}$

What is the current ratio at December 31,2012?

• A) 0.90
• B) 1.00
• C) 2.32
• D) 3.34

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Definitions:

Heuristic

A problem-solving strategy using practical methods or strategies for finding acceptable solutions, even if they're not perfect.

Multiple-Choice Exam

A form of assessment where individuals select the correct answer(s) from several choices provided for each question, used to evaluate knowledge on a topic.

Rule

A prescribed guide for conduct or action, which can be established by an authority or developed within a particular system or community.

Functional Fixedness

A cognitive bias limiting a person's ability to use an object only in the way it is traditionally used, hindering creativity and problem-solving.