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Faultless, Inc -If Current Assets Amount to $150, Total Assets Are $350

Question 44

Multiple Choice

Faultless, Inc.
Selected data from Faultless' financial statements are provided below:
20122011 Current Assets $6,000$3,000 Long-Term Assets 7,0004,000 Current Liabilities 2,0003,000 Long-Term Liabilities 7,0000 Stockholders’ Equity 4,0004,000 Net Sales 9,5009,100 Net Income 1,0005000\begin{array}{lcc}&\underline{2012}&\underline{2011}\\\text { Current Assets } & \$ 6,000 & \$ 3,000 \\\text { Long-Term Assets } & 7,000 & 4,000 \\\text { Current Liabilities } & 2,000 & 3,000 \\\text { Long-Term Liabilities } & 7,000 & 0 \\\text { Stockholders' Equity } & 4,000 & 4,000 \\\text { Net Sales } & 9,500 & 9,100 \\\text { Net Income } & 1,000 & 5000\end{array}
-If current assets amount to $150, total assets are $350, current liabilities are $65, and total liabilities are $100, then the current ratio is:


A) 3.50.
B) 3.03.
C) 2.31.
D) 2.12.

Correct Answer:

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