Question

1/The following partial balance sheet ($ in thousands) for Paisano Seafood Inc. is shown below.

Assets				Liabilities and Equity
Current assets:				Current liabilities:
Cash	$	75		Accounts payable	$	232
Accounts receivable (net)		186		Other liabilities		72
Notes receivable		57		Total current liabilities		304
Inventories		212		Long-term liabilities		103
Prepaid expenses		41		Total liabilities		407
Total current assets		571		Shareholders' equity:
Plant assets (net)		267		Capital stock		130
				Retained earnings		301
				Total shareholders' equity		431
Total assets	$	838		Total liabilities and equity	$	838

The current ratio is (Round your answer to two decimal places.):

Multiple Choice

• 2.14.

• 1.88.

• 0.68.

• 1.40.

2/ Janson Corporation Co.'s trial balance included the following account balances at December 31, 2018:

Accounts receivable	$13,100
Inventories	42,000
Patent	13,500
Investments	31,500
Prepaid insurance	7,400
Note receivable, due 2021	50,900

Investments consist of treasury bills that were purchased in November, 2018 and mature in January, 2019. Prepaid insurance is for two years. What amount should be included in the current asset section of Janson’s December 31, 2018, balance sheet?

Multiple Choice

• $ 94,000.

• $ 58,800.

• $ 90,300.

• $ 141,200

3/ Recent financial statement data for Harmony Health Foods (HHF) Inc. is shown below.

Current liabilities	$	180		Income before interest and taxes	$	125
10% Bonds, long-term		350		Interest expense		35
Total liabilities		530		Income before tax		90
Shareholders' equity				Income tax		26
Capital stock		220		Net income	$	64
Retained earnings		283
Total shareholders' equity		503
Total liabilities and equity	$	1,033

HHF's long-term debt to equity ratio equity is:

Multiple Choice

• 143.7%.

• 0.0%.

• 159.1%.

• 69.6%.

Answer 1