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Home Q & A Board Other Fields Homework Help Business Accounting
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bernie2981 bernie2981
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8 years ago
The following information relates to Truman Unlimited for the past two years.

Account   Current year   Prior year
Net sales (all credit)   $219,000   $180,000
Cost of goods sold   $125,000   $110,000
Gross profit   $94,000   $70,000
Income from operations   $32,000   $30,000
Interest expense   $2,000   $7,000
Net income   $25,000   $18,000
Cash   $25,000   $17,000
Accounts receivable, net   $26,000   $35,000
Inventory   $65,000   $60,000
Prepaid expenses   $2,000   $1,000
Total current assets   $118,000   $113,000
Total long-term assets   $162,750   $187,751
Total current liabilities   $60,000   $90,000
Total long-term liabilities   $22,000   $78,000
Common stock, no par,
 2,500 shares, market value $96 per share   
$40,000   
$40,000
Retained earnings   $158,750   $92,751

The current ratio for the current year is closest to
A) 1.25.
B) 2.00.
C) 13.50.
D) 1.97.
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
You're such a dedicated member, I very much appreciate the help.

Marking this solved ✓
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