Homework Help is Here – Start Your Trial Now!
Business
Accounting
Brock Company's financial information is listed below. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.                                            Assets                                                        Cash and short-term investments $  40,000 Accounts receivable (net) 30,000 Inventory 25,000 Property, plant, and equipment   215,000 Total assets $310,000                      Liabilities and Stockholders’ Equity                              Current liabilities $ 60,000 Long-term liabilities 95,000 Common stock, $10 par 60,000 Retained earnings 95,000 Total liabilities and stockholders’ equity $310,000 ​                                  Income Statement                                         Sales $90,000 Cost of goods sold   45,000 Gross margin $45,000 Operating expenses   20,000 Net income $25,000   Number of shares of common stock 6,000 Market price of common stock $20 ​ What is the current ratio?   a. 0.67   b. 1.42   c. 1.58   d. 1.17

Brock Company's financial information is listed below. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.                                            Assets                                                        Cash and short-term investments $  40,000 Accounts receivable (net) 30,000 Inventory 25,000 Property, plant, and equipment   215,000 Total assets $310,000                      Liabilities and Stockholders’ Equity                              Current liabilities $ 60,000 Long-term liabilities 95,000 Common stock, $10 par 60,000 Retained earnings 95,000 Total liabilities and stockholders’ equity $310,000 ​                                  Income Statement                                         Sales $90,000 Cost of goods sold   45,000 Gross margin $45,000 Operating expenses   20,000 Net income $25,000   Number of shares of common stock 6,000 Market price of common stock $20 ​ What is the current ratio?   a. 0.67   b. 1.42   c. 1.58   d. 1.17

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question
100%
  1. Brock Company's financial information is listed below. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.

                                               Assets                                                       

    Cash and short-term investments

    $  40,000
    Accounts receivable (net)

    30,000
    Inventory

    25,000
    Property, plant, and equipment

      215,000
    Total assets

    $310,000



                         Liabilities and Stockholders’ Equity                             

    Current liabilities

    $ 60,000
    Long-term liabilities

    95,000
    Common stock, $10 par

    60,000
    Retained earnings 95,000
    Total liabilities and stockholders’ equity

    $310,000

    ​

                                     Income Statement                                        

    Sales

    $90,000
    Cost of goods sold

      45,000
    Gross margin

    $45,000
    Operating expenses

      20,000
    Net income

    $25,000

     

    Number of shares of common stock

    6,000
    Market price of common stock

    $20

    ​

    What is the current ratio?

      a.
    0.67
      b.
    1.42
      c.
    1.58
      d.
    1.17
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS