The balanoe sheet and income statement shown below are for Byrd Inc, and the dat

Question

The balanoe sheet and income statement shown below are for Byrd Inc, and the data are to be used for the tollowing questions. Note that the tirm has no amortization charges, it does not lease any assets, and none of its debt must be retired during the next 5 years (notes payable will be rolled over). BALANCE SHEET $140.0 Accounts payable $ 800.0 Accts. receivable 880.0 Notes payable 1.3200 Accruals $2,340.0 Tolal current liatilities $1800.0 1,000.0 $2,800 0 Tolal current assels Long tenm bonds Total deb Common stock Retained earnings 1,0000 $1,200.0 $4,0000 Net plant & equip. 1,660.0 Total common equity $4,0000 Total liabilities & equity Total assets INCOME STATEMENT Net sales Operating costs $3000 Less laxes Net income S 122.4 OTHER DATA Shares outstanding (millions) Common dividends Interest rate on NP and long-term bonds Federal plus state income tax rate Year-end stock price 60.00 $42.8 6.0% 40% $30.60 What is the fim's current ratio? Select one O a. 1.10 O b 1.30 O c. 1.20 O d 1.50 (0-140

Explanation / Answer

Current ratio is given by the following formula

Current Ratio=Current Assets/Current Laibilities=(140+880+1320)/(800+600+400)=1.30

Option B

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