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May I ask for an explanation and solution to the question for a better understanding. Thank you! At December 31, 2011, Rey's current ratio was:   a. 1.50 to 1 b. 1.75 to 1 c. 2.06 to 1 d. 3.10 to 1

May I ask for an explanation and solution to the question for a better understanding. Thank you! At December 31, 2011, Rey's current ratio was:   a. 1.50 to 1 b. 1.75 to 1 c. 2.06 to 1 d. 3.10 to 1

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity
Section: Chapter Questions
Problem 16P: Ratios Analyses: McCormick Refer to the information for McCormick above. Additional information for...
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May I ask for an explanation and solution to the question for a better understanding. Thank you!

At December 31, 2011, Rey's current ratio was:
 
a. 1.50 to 1
b. 1.75 to 1
c. 2.06 to 1
d. 3.10 to 1
Rey, Inc. SELECTED FINANCIAL DATA December 31, 2011 2010 S 170,000 $ 90,000 400,000 Cash Accounts receivable (net) Merchandise inventory Short-term marketable securities 450,000 540,000 80,000 420,000 40,000 1,000,000 1,000,000 Land and building (net) Mortgage payable current portion Accounts payable and accrued liabilities Short-term notes payable 60,000 50,000 240,000 220,000 100,000 140,000 Net credit sales totaled $3,000,000 and $2,000,000 for the years ended December 31, 2011 and 2010, respectively.
Transcribed Image Text:Rey, Inc. SELECTED FINANCIAL DATA December 31, 2011 2010 S 170,000 $ 90,000 400,000 Cash Accounts receivable (net) Merchandise inventory Short-term marketable securities 450,000 540,000 80,000 420,000 40,000 1,000,000 1,000,000 Land and building (net) Mortgage payable current portion Accounts payable and accrued liabilities Short-term notes payable 60,000 50,000 240,000 220,000 100,000 140,000 Net credit sales totaled $3,000,000 and $2,000,000 for the years ended December 31, 2011 and 2010, respectively.
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