Washington Corporation Has the Following Financial Data for 2013 and 2012

question 72

Multiple Choice

Washington Corporation has the following financial data for 2013 and 2012. $\begin{array}{|l|c|l|}\hline2012&2013\\\hline&&\text { ASSSETS }\\\hline & & \text { Curent Assets: } \\\hline 9,000 & \$ 37,000 & \text { Cash } \\\hline 11,000 & 8,000 & \text { Marketable Securities } \\\hline 25,000 & 32,000 & \text { Accounts Receivable } \\\hline 10,000 & 13,000 & \text { Other Current Assets } \\\hline 55,000 & 90,000 & \text { Total Current Assets } \\\hline 120,000 & 135,000 & \text { Fixed Assets(net) } \\\hline \$ 175,000 & \$ 225,000 & \text { Total Assets } \\\hline & & \text { Liabilities } \\\hline \$ 40,000 & \$ 71,000 & \text { Curent Liabilities } \\\hline 35,000 & 34,000 & \text { Long-term Liabilities } \\\hline \$ 75,000 & \$ 105,000 & \text { Total Libilities } \\\hline \$ 100,000 & \$ 120,000 & \text { Total Stocklohlers'Equity } \\\hline \$ 175,000 & \$ 225,000 & \text { Total Linbilities And StockJolders' Equity } \\\hline\end{array}$
Based on Washington's current ratio, which of the following statements is true regarding the company?

• A) Washington's current ratio has increased, indicating that the company is in a more favorable position to obtain short-term credit than in 2012.
• B) Washington's current ratio has decreased, indicating that the company is in a less favorable position to obtain short-term credit than in 2012.
• C) Washington's current ratio has increased, indicating that the company is in a less favorable position to obtain short-term credit than in 2012.
• D) Washington's current ratio has decreased, indicating that the company is in a more favorable position to obtain short-term credit than in 2012.

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Definitions:

Expectancy Model

A psychological theory that explains motivation as a function of an individual's expectations of their ability to achieve a goal and the value they place on that achievement.

Effort And Performance

This refers to the relationship between the amount of effort put into a given task and the resulting performance level, highlighting the direct impact effort has on outcomes.

Relationship

A connection, association, or involvement between two or more entities, often characterized by a level of emotional or social linkage.

Equity Model

A theory that suggests fairness in the workplace is achieved when the ratio of inputs to outcomes is balanced among employees.