The balance sheet for Frankie Co. is shown below: Frankie Co. Balance Sheet At December 31, 2021 Assets: Cash $ 150 Short-term investments 200 Accounts receivable (net) 300 Inventories 450 Property, plant, and equipment (net) 1,100 Total assets $2,200 Liabilities and Shareholders' Equity: Current liabilities $ 450 Long-term liabilities 600 Paid-in capital 150 Retained earnings 1,000 Total liabilities and shareholders' equity $2,200 Selected Year 2021 income statement information for Frankie Co. includes: Net sales $7,700 Interest expense 90 Income tax expense 150 Net income 350 Frankie's acid-test ratio at December 31, 2021 is nearest to: Group of answer choices 0.62 2.44 1.05 1.44
The balance sheet for Frankie Co. is shown below: Frankie Co. Balance Sheet At December 31, 2021 Assets: Cash $ 150 Short-term investments 200 Accounts receivable (net) 300 Inventories 450 Property, plant, and equipment (net) 1,100 Total assets $2,200 Liabilities and Shareholders' Equity: Current liabilities $ 450 Long-term liabilities 600 Paid-in capital 150 Retained earnings 1,000 Total liabilities and shareholders' equity $2,200 Selected Year 2021 income statement information for Frankie Co. includes: Net sales $7,700 Interest expense 90 Income tax expense 150 Net income 350 Frankie's acid-test ratio at December 31, 2021 is nearest to: Group of answer choices 0.62 2.44 1.05 1.44
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The
|
Frankie Co. Balance Sheet At December 31, 2021 |
|
|
Assets: |
|
|
Cash |
$ 150 |
|
Short-term investments |
200 |
|
|
300 |
|
Inventories |
450 |
|
Property, plant, and equipment (net) |
1,100 |
|
Total assets |
$2,200 |
|
Liabilities and Shareholders' Equity: |
|
|
Current liabilities |
$ 450 |
|
Long-term liabilities |
600 |
|
Paid-in capital |
150 |
|
|
1,000 |
|
Total liabilities and shareholders' equity |
$2,200 |
Selected Year 2021 income statement information for Frankie Co. includes:
|
Net sales |
$7,700 |
|
Interest expense |
90 |
|
Income tax expense |
150 |
|
Net income |
350 |
Frankie's acid-test ratio at December 31, 2021 is nearest to:
Group of answer choices
0.62
2.44
1.05
1.44
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