Rainsoft Company Selected Data from the Financial Statements Are Provided

question 117

Multiple Choice

Rainsoft Company Selected data from the financial statements are provided below:
$\begin{array}{llc}& \underline { 2015 }& \underline { 2014 }& \underline {2013 }\\ \text { Cash } &\$ 44,000 & \$ 28,000 & \$ 14,000 \\ \text { AccountsReceivable } &84,000 & 32,000 & 114,400 \\ \text { Inventory } &44,000 & 166,000 & 100,000 \\ \text {Prepaid Expenses } &\underline {46,000} & \underline {36,000} & \underline {41.600}\\ \text { Total Curent Assets } &\$ 218,000 & \$ 262,000 & \$ 270,000\\\\ \text { Total Current Liabilities } &\$ 130,000 & \$ 144,000 \\ \text { Net Credit Sales } &442,000 & 652,000 \\ \text { Cost of Goods Sold } &336,000 & 598,000 \\ \text { Net Cash Flows from Operating Activities } &32,000 & 58,000\end{array}$
-Refer to Rainsoft Company.What is the current ratio for 2015?

• A)0.60
• B)0.99
• C)1.34
• D)1.68

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Definitions:

Expert Power

The influence that one has over others as a result of specialized knowledge, skills, or expertise.

Legitimate Power

Authority or power derived from a position, role, or legal standing, which is recognized and accepted by others.

Coercive Power

A form of power that is based on the ability to deliver punishments or impose penalties.

Reward Power

The capacity to offer something desirable to influence another’s behavior or decisions.