Question

Based on the following information from Schrute Company's balance sheet, calculate the current ratio. Current assets $ 102,000 Investments 53,000 Plant assets 300,000 Current liabilities 44,000 Long-term liabilities 95,000 Retained earnings 316,000 Multiple Choice 3.52. 3.27. 1.12. 0.43. 2.32.

Answer 1

Answer:

2.32

Explanation:

Current ratio is a financial ratio that shows how many times the company's current assets can be used to settle the company's current obligations.

It is given as

Current ratio = current asset/current liabilities

Current assets = $102,000

Current liabilities = $44,000

Therefore,

Current ratio = $ 102,000/$44,000

= 2.32