the following current assets and current liabilities were reported by a small company on December 31, their year-end. (10.4)

Accounts payable		$6,000
Accrued liabilities		3,000
Accounts receivable		10,000
Cash and equivalents		8,000
CPP payable		600
Current portion:
Notes payable		10,000
Provisions		5,000
E I payable		1,100
Income tax payable		2,500
Inventories		18,000
Prepaid Expenses		3,000
Short-term investments		4,000

What is their current ratio on December 31?

• A :

  2.52

• B :

  1.22

• C :

  0.78

• D :

  1.52

• _____________________

• An employee works for a company that pays time and one-half overtime and has a standard work day of 8 hours. Regular wages are $20 per hour. What would be the gross pay for an employee that worked 11 days and accumulated 6 hours of overtime? (10.3)

• A :

  $400

• B :

  $1,820

• C :

  $1,880

• D :

  $1,940

• ____________

• A company sells 25,000 blenders each year at a price of $250 each, which includes a two-year warranty on parts. Based on previous experience, about one in every ten units sold is returned for repairs, and the average repair cost is $50 per unit. What is the estimated warranty expense associated with this product? (10.2)

• A :

  $62,500

• B :

  $62,500 in year one, $62,500 in year two

• C :

  $125,000

• D :

  $12,500