2A2B DEDHAM CORPORATION HAS DECIDED TO INCLUDE CERTAIN FINANCIAL RATI...
35.
CSO: 2A2a
LOS: 2A2b
Dedham Corporation has decided to include certain financial ratios in its year-end annual
report to shareholders. Selected information relating to its most recent fiscal year is
provided below.
• Cash
$10,000
• Accounts receivable
20,000
• Prepaid expenses
8,000
• Inventory
30,000
• Available-for-sale securities
-At cost
9,000
-Fair value at year end
12,000
• Accounts payable
15,000
• Notes payable (due in 90 days)
25,000
• Bonds payable (due in 10 years)
35,000
Dedham’s quick (acid-test) ratio at year end is
a.
2.00 to 1.
b.
1.925 to 1.
c.
1.80 to 1.
d.
1.05 to 1.