A Partial Balance Sheet for Captain D's Sportswear Is Shown

question 73

Multiple Choice

A partial balance sheet for Captain D's Sportswear is shown below.(dollars in thousands) The current ratio is (rounded to two decimal places) :
$\begin{array} { | l | r | l | r | } \hline \text { Assets: } & & \text { Liabilities: } & \\\hline \text { Cash } & \$ 60 & \text { Accounts payable } & \$ 240 \\\hline \text { Accounts receivable (net) } & 170 & \text { Other liabilities } & \underline{ 80 } \\\hline \text { Investments } & 50 & \text { Total current liabilities } & 320 \\\hline \text { Inventory } & 200 & \text { Long-term liabilities } & \underline { 110 } \\\hline \text { Prepaid rent } & \underline{25} & \text { Total liabilities } & \underline { 430 } \\\hline \text { Total current assets } & \underline { 505 } & \text { Stockholders' equity: } & \\\hline \text { Property \& Equipment, (net) } & \underline { 255 } & \text { Common stock } & 150 \\\hline & & \text { Retained earnings } & \underline { 180 } \\\hline &\_\_\_ & \text { Total stockholders' equity } & \underline { 330 } \\\hline \text { Total assets } & \underline{\$ 760} & \text { Total liabilities and equity } & \underline{\$ 760} \\\hline\end{array}$

• A)1.98.
• B)1.58.
• C)1.17.

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Definitions:

Codicil

A supplemental document that modifies, explains, or revokes a will or part of a will.

Bequest

Personal property left in a will. Also called legacy.

Durable Power of Attorney

A legal document that grants a person the authority to make decisions on behalf of another person in financial or health matters, continuing in effect even if the grantor becomes incapacitated.

Numerical Limit

A specified maximum number or quantity allowed or prescribed by regulations or law.