Refer to the Following Selected Financial Information from Texas Electronics

question 117

Multiple Choice

Refer to the following selected financial information from Texas Electronics. Compute the company's acid-test ratio for Year 2. $\begin{array}{lrr}& \text { Year 2 } & \text { Year 1 } \\\text { Cash } & \$ 37,500 & \$ 36,850 \\\text { Short-term investments } & 90,000 & 90,000 \\\text { Accounts receivable, net } & 85,500 & 86,250 \\\text { Merchandise inventory } & 121,000 & 117,000 \\\text { Prepaid expenses } & 12,100& 13,500\\\text { Plant assets } & 388,000 & 392,000 \\\text { Accounts payable } & 113,400 & 111,750 \\\text { Net sales } & 711,000 & 706,000 \\\text { Cost of goods sold } & 390,000 & 385,500\end{array}$

• A) 2.26.
• B) 1.98.
• C) 2.95.
• D) 3.05.
• E) 1.88.

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Definitions:

Type Of Fruit

Type of fruit refers to the various categories or species of fruit, characterized by their unique flavors, textures, and nutritional profiles.

Semantic Processing

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Distributed Practice

Involves spreading learning sessions over time as opposed to cramming them into a short period, enhancing retention and mastery of material.

Deep Processing

A method of memory encoding that involves elaborative rehearsal, resulting in more meaningful analysis of information and better recall.