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Question
Financial information for Brock Company is provided as follows. Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.
Assets
| Cash and short-term investments | $ 40,000 |
| Accounts receivable (net) | 30,000 |
| Merchandise inventory | 25,000 |
| Property, plant, and equipment | 215,000 |
| Total assets | $310,000 |
Liabilities and Stockholders’ Equity
| Current liabilities | $ 60,000 |
| Long-term liabilities | 95,000 |
| Stockholders’ equity—common | 155,000 |
| Total liabilities and stockholders’ equity | $310,000 |
Income Statement
| Sales | $90,000 |
| Cost of merchandise sold | 45,000 |
| Gross profit | $45,000 |
| Operating expenses | 20,000 |
| Net income | $25,000 |
| Number of shares of common stock | 6,000 |
| Market price of common stock | $20 |
What is the current ratio?
a. 1.42
b. 1.17
c. 1.58
d. 0.67
Answer
This answer is hidden. It contains 1 characters.
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