15) Based on the following information from Scra wme following information from Scranton Company's balance sheet, calculate the current ratio. S Current assets Investments Plant assets Current liabilities Long-term liabilities Retained earnings 90.000 50.600 260,000 40.000 91,000 269,600 A) 3.52. E) 1.07 B) 0.44. C) 2.25. D) 3.06. 16) On December 1, Orenthal Marketing Company received $7200 from a customer for a 2-month marketing plan to be completed January 31 of the following year. The cash receipt was recorded as uneared fees. The adjusting entry for the year ended December 31 would include: A) a debit to Unearned Fees for $3600. B) a credit to Earned Fees for $4800. C) a debit to Earned Fees for $7200. D) a debit to Earned Fees for $4800. E) a credit to Unearned Fees for $2400. 17) A company purchased new furniture at a cost of $29,000 on September 30. The furniture is estimated to have a useful life of 5 years and a salvage value of $3500. The company uses the straight-line method of depreciation. How much depreciation expense will be recorded for the furniture for the first year ended December 31? A) $5125 B) $1450 C) $1625 D) $425 E) $1275 18) On July 1, a company paid the $3480 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31? A) S1740. B) $2610. C) $3480. D) $1450. E) $870. 19) Cost of goods sold: A) Is also called gross margin. B) Is the term used for the expense of buying and preparing merchandise for sale. C) is another term for revenue. D) Is another term for merchandise sales. E) Is a term only used by service firms