question 68
Multiple Choice
Scenario: Pettijohn Inc.The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over. Balance Sheet (Millions of $ ) Assets Cash and securities Accounts receivable Inventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Notes payable Accruals Total current liabilities Long-term bonds Total debt Common stock Retained earnings Total common equity Total liabilities and equity 2007$1,554.09,660.013,440.0$24,654.017,346.0$42,000.0$7,980.05,880.04,620.0$18,480.010,920.0$29,400.03,360.09,240.0$12,600.0$42,000.0 Income Statement (Millions of $ ) Net sales Operating costs except depr’n Depreciation Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income Other data: Shares outstanding (millions) Common dividends Interest rate on notes payable & L-T bonds Federal plus state income tax rate Year-end stock price 2007$58,800.00$54,978.0$1,029.0$2,793.01,050.0$1,743.0$610.1$1,133.0175.00$509.836.25%35%$77.69
-Refer to Scenario: Pettijohn Inc.What is the firm's quick ratio?
Definitions:
Marginal Social Benefit
The extra advantage to the community that comes from creating or using an additional unit of a product or service.
Pollution
It refers to the introduction of harmful substances or products into the environment, causing adverse effects on living beings and ecosystems.
External Costs
Costs that are not reflected in the market price of goods or services, often borne by society.
Efficient
Describes a system or process that operates in a way that maximizes productivity or output with minimal waste or expense.