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Excerpts from Colter Corporation's most recent balance sheet appear below: Year 2 Year 1 Current assets: Cash $ 103 $ 133 Accounts receivable, net 126
Excerpts from Colter Corporation's most recent balance sheet appear below:
Year 2 | Year 1 | ||||||||||
Current assets: | |||||||||||
Cash | $ | 103 | $ | 133 | |||||||
Accounts receivable, net | 126 | 136 | |||||||||
Inventory | 209 | 199 | |||||||||
Prepaid expenses | 53 | 53 | |||||||||
Total current assets | 491 | 521 | |||||||||
Total current liabilities | $ | 372 | $ | 355 | |||||||
Sales on account in Year 2 amounted to $1,535 and the cost of goods sold was $915.
The current ratio at the end of Year 2 is closest to:
Multiple Choice
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0.58
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0.64
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1.32
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1.27
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