Calculate the current ratio using the following information: (Round your answer to two decimals
)
Cash $6,000
Accounts Receivable 1,300
Prepaid Rent 1,100
Land 20,000
Equipment 6,000
Accumulated Depreciation 1,000
Accounts Payable 5,000
Salaries Payable 1,000
Notes Payable-long term 8,000
A) 1.40
B) 1.68
C) 1.44
D) 1.22
A .Current ratio = Total current assets / Total current liabilities
Cash $6,000
Accounts Receivable 1,300
Prepaid Rent 1,100
Total current assets $8,400
Accounts Payable $5,000
Salaries Payable 1,000
Total current liabilities $6,000
Current ratio = $8,400 / $6,000 = 1.40
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