Corona Company's Balance Sheet Accounts Follow What Is Corona Company's Current Ratio for 2011?
A)1

question 184

Multiple Choice

Corona Company's balance sheet accounts follow:
$\begin{array}{lrrr} \text { At December 31}&2011&2010&2009\\ \text { Assets}\\ \text { Cash } & \$ 25,868 & \$ 31,163 & \$ 31,182 \\ \text { Accounts receivable, net } & 78,034 & 53,995 & 41,152 \\ \text { Merchandise inventory } & 95,120 & 73,491 & 46,095 \\\text { Prepaid expenses } & 8,330 & 8,099 & 3,429 \\ \text { Plant assets,net } & 241,854 & 218,932 & 199,542 \\ \text { Total assets } & \$ 449,206 & \$ 385,680 & \$ 321,400 \\\text { Liabilities and Equity } & & & \\\text { Accounts payable } & \$ 108,058 & \$ 67,135 & \$ 42,849 \\\text { Long-term notes payable secured by mortgages on } & & & \\\text { plant assets } & 85,791 & 87,819 & 71,029 \\ \text { Common stock, } \$ 10 \text { par value } & 162,500 & 162,500 & 162,500 \\\text { Retained earnings } &92,857 & 68,226 & 45,022 \\\text { Total liabilities and equity } &\$449,206 & \$ 385,680 & \$ 321,400 \\\end{array}$

What is Corona Company's current ratio for 2011?

• A)1.96
• B)2.32
• C)1.07
• D)1.92
• E)2.17

Assess the role of earnings per share (EPS) and EPS growth rate in stock valuation.

Calculate the expected price per share of stock in the future based on anticipated changes in dividends.

Understand the impact of company announcements on future dividends and stock valuation.

Understand the concepts and distinctions between experimental and correlational research, including their abilities to establish causal relationships.

---

Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that is global in scope.

Preferred Shares

A class of ownership in a corporation that has a higher claim on its assets and earnings than common shares, usually with fixed dividends.

Classified

In accounting, this term refers to the arrangement of items in financial statements into categorized sections and subsections to enhance clarity and understanding.

Wholly Owned Subsidiary

A company whose entire share capital is 100% owned by another company, the parent company.