Question
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on
The company's sales for the year were $300,000, its cost of goods sold was $220,000, and its net income was $35,000. All sales were on credit. Preferred dividends for the year were $5,000.
Lisa Inc.'s acid test (quick) ratio at December 31, 20X7, was closest to?
A. 0.6 to 1.
B. 1.1 to 1.
C. 1.8 to 1.
D. 2.0 to 1.
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Answer Option B is correct 11 to 1 A preferred dividend is a dividend tha...
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Core Concepts of Accounting
Authors: Cecily A. Raiborn
2nd edition
470499478, 978-0470499474
