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10. What is the amount of cash that Trek Inc received for the sale of the equipment? Select one O a $5,000 $38.000 c. $30,000

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10. What is the amount of cash that Trek Inc received for the sale of the equipment? Select one O a $5,000 $38.000 c. $30,000 O d. $13,000 Notes 11 0:32 The quick ratio measures the ability of the company Select one: O a. to pay its total liabilities with cash on-hand O b. to pay its current liabilities using quick assets O c. to pay its current liabilities with current assets d. to transform.its total assets into cash Multiple Choice Questions Use the following information to answer questions 3-16 Presented below are the statement of earnings (2020) and the summary statement of financial position (2019 and 2020) for Trek Inc. Trek Inc. Statement of Earnings For the year ended December 31, 2020 (in thousands of dollars) Sales Cost of sales Gross profit $1,640 (800) 840 (40) (400) - 400 Depreciation expense Selling and administrative expenses Earnings from operations Loss on sale of equipment Interest expense Earnings before income taxes Income tax expense Net earnings (6) _(24) 370 (100) $_270 Trek Inc. Summary Statement of Financial Position Dec 31, 2019 Trek Inc. Summary Statement of Financial Position (in thousands of dollars) Dec. 31, 2020 Assets Cash S 52 Short-term Investments 80 Account Receivable (net) 198 Inventories 240 Prepaid Expenses 3 Property, Plant and Equipment (net) 852 Total Assets $1.430 $ 60 40 80 160 7 853 $1,200 Liabilities and Shareholders' Equity Current Liabilities $ 240 200 Bonds Payable Common Shareholders' Equity Total Liabilities and Shareholders' Equity S 160 200 840 $1.200 990 $1.430 Additional information: a) Trek, Inc, purchased new equipment in 2020 for $55,000. It also sold used equipment during the year. b) Trek Inc. had 84.000 common shares outstanding at December 31, 2019. On January 2, 2020. Trek Inc. sold and issued 6.000 additional common shares for a total amount of $60,000. There were no other transactions

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