Great Lakes Manufacturing Inc. comparative Statement of Financial Position at December 31 in (000)'s
	20X4			20X3
Cash	$	5,100		$	4,800
Accounts Receivable	$	9,010		$	6,100
Inventory	$	10,400		$	14,000
Prepaid Expenses	$	1,950		$	1,020
Equipment	$	58,500		$	59,900
Accumulated Depreciation - equipment	$	(33,100	)	$	(32,000	)
Total Assets	$	51,860		$	53,820
Account Payable	$	7,000		$	11,400
Interest Payable	$	350		$	110
Income taxes payable	$	650		$	500
Dividends Payable	$	2,400		$	3,200
Long-term Notes Payable	$	17,500		$	17,000
Common shares	$	22,000		$	20,000
Retained Earnings	$	1,960		$	1,610
Total Liabilities & Shareholders' Equity	$	51,860		$	53,820

Great Lakes Manufacturing Inc.
Income Statement
Year Ended December 31, 20X4 in (000)'s
Sale				$	130,000
Cost of goods sold				$	97,000
Gross Profit				$	33,000
Operating Expenses	$	30,000
Gain on Sale of equipment	$	(1,000	)	$	29,000
Profit from Operations				$	4,000
Other expenses
Interest Expense				$	200
Profit before Income Tax				$	3,800
Income Tax Expense				$	1,550
Profit				$	2,250

Additional Information:

• Operating expenses include depreciation expense of $3,500,000
• Accounts Payable related to the purchase of inventory
• Equipment that cost $3,900,000 was sold at a gain of $1,000,000
• New equipment was purchased during the year for $2,500,000
• Dividends declared and paid in 20X4 totaled $1,900,000
• Common shares were sold for $2,000,000 cash
• Interest payable in 20X4 was $240,000 greater than interest payable in 20X3

The quick ratio at December 20X4 was:

Multiple Choice

• Equal or below 0.10

• Equal or above 1.37

• Not enough data provided to calculate it

• Between 0.45 and 1.36

• Between 0.11 and 0.44

Answer rating: 100% (QA)

Solution Quick Ratio Current Assets Inventories Prepaid Expenses Current Liabilities 2646... View the full answer