Bevington Studio reported the following income statement and balance sheet amounts on December 31, 2007.
Inventory and prepaid expenses account for $20,000 of the 2007 current assets.
Average inventory for 2007 is $15,000.
Average net accounts receivable for 2007 is $30,000.
Average one-day sales are $3,150.
There are 7,000 shares of common stock outstanding.
Total dividends paid during 2007 were $140,000.
The market price per share of common stock is $21.
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What is the company's current ratio for 2007?

Question

Bevington Studio reported the following income statement and balance sheet amounts on December 31, 2007.
 Inventory and prepaid expenses account for $20,000 of the 2007 current assets.
Average inventory for 2007 is $15,000.
Average net accounts receivable for 2007 is $30,000.
Average one-day sales are $3,150.
There are 7,000 shares of common stock outstanding.
Total dividends paid during 2007 were $140,000.
The market price per share of common stock is $21.
-
What is the company's current ratio for 2007?

Quizplus · Accepted Answer

The Answer of Bevington Studio reported the following income statement and balance sheet amounts on December 31, 2007.
 Inventory and prepaid expenses account for $20,000 of the 2007 current assets.
Average inventory for 2007 is $15,000.
Average net accounts receivable for 2007 is $30,000.
Average one-day sales are $3,150.
There are 7,000 shares of common stock outstanding.
Total dividends paid during 2007 were $140,000.
The market price per share of common stock is $21.
-
What is the company's current ratio for 2007?

Bevington Studio Reported the Following Income Statement and Balance Sheet