Excerpts from Colter Corporation's Most Recent Balance Sheet Appear Below

question 129

Multiple Choice

Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The current ratio at the end of Year 2 is closest to:

• A)0.32
• B)0.38
• C)1.25
• D)1.20

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Definitions:

Merchant

A person who is engaged in the purchase and sale of goods. Under the Uniform Commercial Code, a person who deals in goods of the kind involved in the sales contract; for further definitions, see UCC 2–104.

Original Offer

The initial proposal or bid made during negotiations or contractual discussions, from which subsequent offers may be derived.

New Terms

Newly established conditions or concepts introduced within a specific context, such as agreements or industries.

Refined Grains

Processed grains that have had the germ and bran removed, which lowers their fiber content and nutritional value.