1. The following information is given for Sego Company:

Cash	$50,000	Inventory	$45,000
Land	75,000	Accumulated Depreciation	40,000
Plant & Equipment	150,000	Accounts Payable	60,000

What are the companys current assets?

a. $220,000

b. $155,000

c. $130,000

d. $ 95,000

2. Starship Inc.'s gross profit ratio increased from 36.5% in 2015 to 48.6% in 2016. What is the trend in this change?

a. An upward trend

b. A downward trend

c. It depends on whether net sales increased or decreased during the period.

d. Trends cannot be determined without the dollar amount of the increase provided.

1. A balance sheet provides information at one specific point in time, while the income statement, statement of retained earnings and statement of cash flows provide information on activities that occur over a period of time.

a. True

b. False

2. (1/2 point) Current assets, other than cash, are expected to be sold or consumed are during a company's normal operating cycle or within one year.

a. True

b. False

3. (1/2 point) Obligations that will be paid during several the next years must be reported as current liabilities on a classified balance sheet.

a. True

b. False

4. (1/2 point)The excess of current assets over current liabilities is referred to as working capital.

a. True

b. False