Following Are the Financial Statements for Starman Corporation for the Year

question 22

Multiple Choice

Following are the financial statements for Starman Corporation for the year ended December 31, 2009. Assume that all balance sheet amounts represent both average and ending figures. Starman Corporation
Income Statement
Far the Year Ended December 31, 2009
$\begin{array}{lr}\text { Net sales } & \$ 400,000 \\\text { Cost of goods sold } & 240,000 \\\text { Gross margin } & \$ 160,000 \\\text { Operating expenses } & 40,000 \\\text { Income before income taxes } & \$ 120,000 \\\text { Income taxes expense } & 30,000 \\\text { Net income } & \$ 90,000 \\\hline\end{array}$ What is the current ratio for this corporation? Round your answer to two decimal places.

• A) 1.00 times
• B) 1.54 times
• C) 1.70 times
• D) 2.00 times

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