As of December 31, 2013, Gant Corporation Had a Current

question 125

Multiple Choice

As of December 31, 2013, Gant Corporation had a current ratio of 1.29, quick ratio of 1.05, and working capital of $18,000. The company uses a perpetual inventory system and sells merchandise for more than it cost. On January 1, 2014, Gant recorded cost of goods sold of $4,100. As a result of this transaction, Gant's quick ratio will:

• A) Decrease.
• B) Increase.
• C) Remain the same.
• D) Cannot be determined.

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Definitions:

Pearson Correlation

A statistical measure that evaluates the linear relationship between two continuous variables.

Critical Values

Threshold values on the scale of a test statistic beyond which the null hypothesis is rejected.

Variables

Any characteristics, number, or quantity that can be measured or counted.

Pearson Correlation

A measure of the linear correlation between two variables, ranging from -1 to 1, where 1 is total positive linear correlation, 0 is no linear correlation, and -1 is total negative linear correlation.