Question 18

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Selected financial data for Wilmington Corporation is presented below.

WILMINGTON CORPORATION

Balance Sheet

As of December 31, 2017

	Dec. 31, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 576,843	$ 305,088
Marketable securities	166,106	187,064
Accounts receivable (net)	258,387	289,100
Inventories	424,493	391,135
Prepaid expenses	55,369	25,509
Other current assets	83,053	85,029
Total Current Assets	1,564,251	1,282,925
Property, plant and equipment	1,384,217	625,421
Long-term investment	568,003	425,000
Total Assets	$3,516,471	$2,333,346
Current Liabilities
Short-term borrowings	$ 306,376	$ 170,419
Current portion of long-term debt	155,000	168,000
Accounts payable	254,111	286,257
Accrued liabilities	273,658	166,983
Income taxes payable	97,735	178,911
Total Current Liabilities	1,086,880	970,570
Long-term debt	500,000	300,000
Deferred income taxes	215,017	262,404
Total Liabilities	1,801,897	$1,532,974
Common stock	$ 425,250	$ 125,000
Additional paid-in capital	356,450	344,335
Retained earnings	932,874	331,037
Total Stockholders' Equity	1,714,574	800,372
Total Liabilities and Stockholders' Equity	$3,516,471	$2,333,346

Selected Income Statement Data - for the year ending December 31, 2017:

Net sales	$4,885,340
Cost of goods sold	(2,942,353	)
Selling expenses	(884,685	)
Operating income	1,058,302
Interest expense	(55,240	)
Earnings before income taxes	1,003,062
Income tax expense	(401,225	)
Net income	$ 601,837

Selected Statement of Cash Flow Data - for the year ending December 31, 2017:

Cash flows from operations	$1,456,084
Capital expenditures	$745,862

Wilmington Corporation's quick ratio in 2017 was:

Select one:

A. 0.81

B. 0.92

C. 1.44

D. 1.09