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1. Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2. Year 2 Year 1 Cash $37,500
1.
Refer to the following selected financial information from McCormik, LLC. Compute the company's current ratio for Year 2.
| Year 2 | Year 1 |
Cash | $37,500 | 36,850 |
Short-term investments | 90,000 | 90,000 |
Accounts receivable, net | 85,500 | 86,250 |
Merchandise inventory | 121,000 | 117,000 |
Prepaid expenses | 12,100 | 13,500 |
Plant assets | 388,000 | 392,000 |
Accounts payable | 113,400 | 111,750 |
Net sales | 711,000 | 706,000 |
Cost of goods sold | 390,000 | 385,500 |
D. 3.05. |
B. 1.98. |
E. 1.88. |
C. 2.95. |
A. 2.26.
|
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