Financial Statements for Marcell Company Appear Below

question 113

Multiple Choice

Financial statements for Marcell Company appear below:
-Marcell Company's current ratio at the end of Year 2 was closest to:

• A)1.04
• B)0.42
• C)0.48
• D)1.22

---

Definitions:

FOB Destination

A shipping term indicating that the seller bears the shipping costs and maintains ownership until the goods reach the buyer's location.

FOB Shipping Point

A term used in shipping contracts to indicate that the buyer assumes responsibility for the goods and the shipping costs from the point of departure.

Ending Inventory

Refers to the value of goods available for sale at the end of an accounting period.

Inventory Turnover Ratio

A financial metric indicating the number of times a company sells and replaces its stock of goods during a certain period, used to assess the efficiency of inventory management.