The financial statements of Weston Office Supply include the following items
2017 2016
Cash $43,500 $50,000
Short-term Investments 27,000 17,000
Net Accounts Receivable 102,000 97,000
Merchandise Inventory 125,000 119,000
Total Assets 527,000 554,000
Total Current Liabilities 251,000 242,000
Long-term Note Payable 59,000 51,000
What is 2017 current ratio? (Round your answer to two decimal places.)
A) 0.84
B) 0.56
C) 1.19
D) 1.70
C .C)
Current Ratio = Total current assets / Total current liabilities
Current Ratio = (Cash $43,500 + Short-term Investments $27,000 + Net Accounts Receivable $102,000 + Merchandise Inventory $125,000 ) / $251,000
Current Ratio = $297,500 / $251,000
Current Ratio = 1.19
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