The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. $$\begin{array} { l r }
\text { Gross profit } & 40,000 \
\text { Operating expenses } & 20,000 \
\text { Net income } & \$ 20,000 \
& \
\text { Number of shares of common stock } & 6,000 \
\text { Market price of common stock } & \$ 20 \
\text { Dividends per share on common stock } & 0.90 \
\text { Cash provided by operations } & \$ 30,000
\end{array}$$ What is the current ratio for this company?
A) 1.42
B) 0.80
C) 1.16
D) 0.60

Question

The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.  $$\begin{array} { l r } 
\text { Gross profit } & 40,000 \
\text { Operating expenses } & 20,000 \
\text { Net income } & \$ 20,000 \
& \
\text { Number of shares of common stock } & 6,000 \
\text { Market price of common stock } & \$ 20 \
\text { Dividends per share on common stock } & 0.90 \
\text { Cash provided by operations } & \$ 30,000
\end{array}$$ What is the current ratio for this company?
A) 1.42 
B) 0.80 
C) 1.16 
D) 0.60

Quizplus · Accepted Answer

The Answer of The following information pertains to Unique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.  $$\begin{array} { l r } 
\text { Gross profit } & 40,000 \
\text { Operating expenses } & 20,000 \
\text { Net income } & \$ 20,000 \
& \
\text { Number of shares of common stock } & 6,000 \
\text { Market price of common stock } & \$ 20 \
\text { Dividends per share on common stock } & 0.90 \
\text { Cash provided by operations } & \$ 30,000
\end{array}$$ What is the current ratio for this company?
A) 1.42 
B) 0.80 
C) 1.16 
D) 0.60

The Following Information Pertains to Unique Company What Is the Current Ratio for This Company? A) 1

The Following Information Pertains to Unique Company What Is the Current Ratio for This Company?
A) 1