The following information pertains to Brock Company. Assume that all balance she

Question

The following information pertains to Brock Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume 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 STOCKHOLDER"S EQUITY ____________________________________________________ Current liabilities $60,000 Long-term liabilities 95,000 Stockholder's equity common 155,000 Total liabilities and stockholder's 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 Numbers of shares of common stock 6,000 Market price of common stock 20 What is the current ratio for this company? a. 0.67 b. 1.58 c. 1.42 d. 0.78

Explanation / Answer

b. 1.58

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.