Scrubber,Inc

question 134

Multiple Choice

Scrubber,Inc.presented the following information in a note to its financial statements for the year ending December 31,2012: The company has a loan agreement with Mountain State Bank that states:
1) The current ratio should remain at least 2.0 to 1 at all times.
2) The debt-to-equity ratio should not exceed .7 to 1 at any time.
3) The company must maintain $75,000 cash at all times.
The ratios at year-end are: current ratio,2.3 to 1 and debt-to-equity ratio,.2 to 1.The amount of cash on the bank statement is $75,400,but the cash account after the adjustments from the bank reconciliation has a balance of $74,900.Has Scrubber violated its loan agreement?

• A)No
• B)Yes,the cash balance is less than $75,000.
• C)Yes,the current ratio is .3 or 30% larger than the agreement indicates.
• D)Yes,the cash balance is less than $75,000,and the debt-to-equity ratio is overstated.

Grasp the concept of biodiversity and the impact of human activities on various species.

Identify the key gases contributing to ozone depletion and their sources.

Understand the role of conservation efforts in protecting natural habitats.

Describe the effects of invasive species on native biodiversity.

---

Definitions:

Greenmail

A situation where a company buys back its own shares from a potential acquirer at a price higher than the market value to avoid a takeover.

Poison Pill

A poison pill is a defense strategy used by a corporation to deter or prevent hostile takeovers.

Takeover Attempt

An effort by one company or entity to gain control of another company by acquiring a significant portion of its shares or assets.

Defensive Merger Tactics

Strategies employed by a company to avoid being taken over by another company, often including legal and financial maneuvers.