The following information pertains to Tanzi Company. Assume that all balance she
ID: 2357260 • Letter: T
Question
The following information pertains to Tanzi Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments $36,821 Accounts receivable (net) $30,867 Inventory $35,268 Property, plant and equipment $218,595 Total Assets $321,551 Liabilities and Stockholders' Equity Current liabilities $55,390 Long-term liabilities $86,039 Stockholders' equity-common $180,122 Total Liabilities and stockholders' equity $321,551 Income Statement Sales $87,622 Cost of goods sold $39,430 Gross margin $48,192 Operating expenses $20,942 Net income $27,250 Number of shares of common stock $5,426 Market price of common stock $28 What is the current ratio for this company? Select the correct answer. a. 0.66 b. 2.22 c. 1.86 d. 1.22Explanation / Answer
The following information pertains to Tanzi Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.
Assets Cash and short-term investments $36,821
Accounts receivable (net) $30,867
Inventory $35,268 Property, plant and equipment $218,595
Total Assets $321,551
Liabilities and Stockholders' Equity Current liabilities $55,390
Long-term liabilities $86,039
Stockholders' equity-common $180,122
Total Liabilities and stockholders' equity $321,551
Income Statement Sales $87,622
Cost of goods sold $39,430
Gross margin $48,192
Operating expenses $20,942
Net income $27,250
Number of shares of common stock $5,426
Market price of common stock $28
What is the current ratio for this company?
Select the correct answer.
a. 0.66
b. 2.22
c. 1.86
d. 1.22
current Ratio =Current Assets/Current Liabilities
36,821/ 55,390= 0.66
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