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The Following Balance Sheet Information Is Provided for Duke Company

Question 119

Multiple Choice

The following balance sheet information is provided for Duke Company for Year 2:  Assets  Cash $5,600 Accounts receivable 11,750 Inventory 14,800 Prepaid expenses 1,600 Plant and equipment, net of depreciation 19,500 Land 13,400‾ Total assets $66,650‾ Liabilities and Stockholders’ Equity  Accounts payable $2,790 Salaries payable 8,230 Bonds payable (Due in ten years)  12,000 Common stock, no par 16,500 Retained earnings 27,130‾ Total liabilities and stockholders’ equity $66,650\begin{array}{lr}\text { Assets }\\\text { Cash } & \$ 5,600 \\\text { Accounts receivable } & 11,750 \\\text { Inventory } & 14,800 \\\text { Prepaid expenses } &1,600 \\\text { Plant and equipment, net of depreciation } & 19,500 \\\text { Land } & \underline{ 13,400 }\\\text { Total assets } &\underline{ \$ 66,650}\\\text { Liabilities and Stockholders' Equity }\\\text { Accounts payable } & \$2,790 \\\text { Salaries payable } &8,230 \\\text { Bonds payable (Due in ten years) } & 12,000 \\\text { Common stock, no par } & 16,500 \\\text { Retained earnings } &\underline{ 27,130} \\\text { Total liabilities and stockholders' equity }& \$66,650\end{array} What is the company's current ratio? (Round your answer to 2 decimal places.)


A) 1.40
B) 1.57
C) 3.06
D) 0.75

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