ACC 557 TUTOR Great Stories /acc557tutor.com ACC 557 TUTOR Great Stories /acc557tutor.com | Page 93

Sales $ 120,000
Cost of goods sold 66,000
Gross profit 54,000
Operating expenses 30,000
Net income $ 24,000
Number of shares of common stock 6,000
Market price of common stock $20
Dividends per share .50
What is the current ratio for Sampson?
0.64
1.80:1
1.30:1
1.40:1
15-
Multiple Choice Question 170
What type of ratios best measure the short-term ability of the
enterprise to pay its maturing obligations and to meet unexpected
needs for cash?
Liquidity
Solvency
Profitability
Leverage