(Solved) The following data represent selected information from the comparative income statement and balance ...

The following data represent selected information from the comparative income statement and balance sheet for Hot Rolled Corporation for the years ended December 31, 2014 and 2013:
   2014   2013
Cash   $ 10,000   $ 15,000
Net accounts receivable   30,000   25,000
Inventory   43,000   40,000
Prepaid expenses   5,000   7,000
Total current assets   88,000   87,000
Total non-current assets   112,000   114,000
Total current liabilities   70,000   60,000
Total non-current liabilities   40,000   45,000
Common shares   60,000   60,000
Retained earnings   30,000   36,000
Net credit sales   370,000   333,000
Cost of goods sold   150,000   160,000
Gross margin   220,000   173,000
Income from operations   95,000   87,000
Interest expense   8,000   8,000
Net income   70,000   57,000

• 10,000 shares of common shares have been issued and outstanding since the company was established. They had a market value of $90 per share on December 31, 2013, and they were selling for $91.50 on December 31, 2014.
Refer to the table above. The current ratio for Hot Rolled Corporation on December 31, 2014, was:
A) 0.80
B) 0.67
C) 1.45
D) 1.26

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The following data represent selected information from the comparative income statement and balance ...

Financial Accounting, Canadian Edition

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