Following Are the Financial Statements for Starman Corporation for the Year

question 159

Multiple Choice

Following are the financial statements for Starman Corporation for the year ended December 31, 20xx. Assume that all balance sheet amounts represent both average and ending figures.
$\begin{array}{|l|}\hline \text { Starman Corporation } \\\hline \text { Balance Sheet } \\\hline \text { December } 31,20 x x \\\hline \text { Assets }\\\hline\end{array}$

$\begin{array}{|l|l|}\hline \text { Cash } & \$ 20,000 \\\hline \text { Marketable securities } & 30,000 \\\hline \text { Accounts receivable } & 50,000 \\\hline \text { Inventory } & 100,000 \\\hline \text { Long-term receivables } & 35,000 \\\hline \text { Property, plant, and equipment } & 65,000 \\\hline \text { Total assets } & \$ 300,000 \\\hline\end{array}$

$\begin{array}{l}\begin{array}{|l|l|}\hline \text { Liabilities and Stockholders' Equity }\\\hline \text { Current liabilities } & \$ 100,000 \\\hline \text { Long-term liabilities } & 60,000 \\\hline \text { Stockholders' equity } & 140,000 \\\hline \text { Total liabilities and stockholders' equity } & \$ 300,000 \\\hline\end{array}\end{array}$

$\begin{array}{|l|}\hline \text { Starman Corporation } \\\hline \text { Income Statement } \\\hline \text { For the Year Ended December } 31,20 \mathrm{xx} \\\hline\end{array}$

$\begin{array}{|l|r|}\hline \text { Net sales } & \$ 400,000 \\\hline \text { Cost of goods sold } & 240,000 \\\hline \text { Gross margin } & \$ 160,000 \\\hline \text { Operating expenses } & 40,000 \\\hline \text { Income before income taxes } & \$ 120,000 \\\hline \text { Income taxes expense } & 30,000 \\\hline \text { Net income } & \$ 90,000 \\\hline\end{array}$
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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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A portion, fraction, or quantity assessed in relation to its total entity.

Business

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Consumer Price Index

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