Compute Darling Company's current ratio using the following information: Accounts receivable$20,000Long-term notes payable$ 80,000Salaries payable5,000Building170,000Prepaid Rent7,000Accounts payable15,000Cash12,000Land75,000

What will be an ideal response?


Current Ratio = Current Assets/Current Liabilities
Current Ratio = ($20,000 + $7,000 + $12,000)/($5,000 + $15,000) = 1.95

Business

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