Hartzog Corporation's Most Recent Balance Sheet and Income Statement Appear

question 29

Multiple Choice

Hartzog Corporation's most recent balance sheet and income statement appear below: Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
-The current ratio at the end of Year 2 is closest to:

• A)2.03
• B)0.35
• C)0.75
• D)0.46

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Definitions:

Raw Materials Purchases

The total cost of raw materials bought for use in the production of goods or products during a specific accounting period.

Accounts Payable

Liabilities or amounts owed by a company to suppliers for purchases made on credit.

Raw Materials Purchases

Transactions related to buying the basic materials that are needed to manufacture goods.

Budgeted Cost

An estimated cost of activities, resources, assets, or liabilities that a company anticipates incurring during a specified period.