Please refer to Table 4-4 for the following questions.
Table 4-4
Wes Donnell, Inc.
Balance Sheet

-In addition to the information contained in Table 4-4,you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010.What is Wes Donnell's total asset balance for 2010?
A) $42,500
B) $36,500
C) $38,500
D) $26,900

Question

Please refer to Table 4-4 for the following questions.
Table 4-4
Wes Donnell, Inc.
Balance Sheet
 
-In addition to the information contained in Table 4-4,you know that the current ratio for 2010 is 4 and that the corporation paid $11,600 in dividends in 2010.What is Wes Donnell's total asset balance for 2010?
A) $42,500 
B) $36,500 
C) $38,500 
D) $26,900

Quizplus · Accepted Answer

The current ratio is calculated as Current Assets / Current Liabilities. Given the current ratio is 4, and from Table 4-4 (not provided, but assuming typical financial analysis approach), if we know the current liabilities, we can calculate the current assets. However, without the specific values from Table 4-4, we directly cannot calculate the total assets. The payment of dividends does not directly affect the calculation of total assets from the given information. However, the correct answer is inferred based on the information that would typically be used to calculate total assets, considering the current ratio and any dividends paid would not directly allow us to calculate total assets without additional information such as current liabilities or equity. The choice is based on an understanding of financial ratios and their implications on financial statements.

Please Refer to Table 4-4 for the Following Questions