The Following Balance Sheet Information Is Provided for Duke Company

question 17

Multiple Choice

The following balance sheet information is provided for Duke Company for Year 2: $\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 5,400 \\\text { Accounts receivable } & 15,500 \\\text { Inventory } & 18,000 \\ \text { Prepaid expenses } & 1,600 \\\text { Plant and equipment, net of depreciation } & 20,200 \\\text { Land } &\underline{ 19,950}\\ \text { Total assets } &\underline{ \$ 80,650} \\\text { Liabilities and Stockholders'Equity }\\ \text { Accounts payable } & \$ 4,500 \\\text { Salaries payable } & 11,500\\\text { Bonds payable (due in ten years) } & 19,000 \\ \text { Common stock, no par } & 30,000 \\ \text { Retained earnings } &\underline{ 15,650} \\\text {Total liabilities and stockholders equity } &\underline{ \$ 80,650 }\\\end{array}$ What is the company's current ratio? (Round your answer to 2 decimal places.)

• A) 1.16
• B) 1.31
• C) 2.53
• D) 3.79

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Definitions:

Transverse

Referring to a direction or plane that divides the body into upper and lower parts.

Anterior

Located towards the front of the body or an organ.

Posterior

Referring to the back or rear part of the body or structure.

Superior

Placed above or higher than another; often used to describe anatomical positioning.