Heart of Tennessee Telecom has these account balances at December 31, 2016:
Notes Payable, long-term.......$ 8,500
Prepaid Rent............... 1,500
Salaries Payable........... 1,200
Service Revenue........... 14,900
Office Supplies........... 500
Accumulated Depreciation—Equip..... 3,000
Advertising Expense........... 600
Accounts Payable...........$ 3,700
Accounts Receivable........... 6,900
Cash................. 3,400
Depreciation Expense—Equip. ...... 1,500
Equipment................. 19,000
Common Stock........... 3,100
Rent Expense.............. 1,000
Requirements
1. Calculate Heart of Tennessee Telecoms current ratio.
2. How much in current assets does Heart of Tennessee Telecom have for every dollar of current liabilities that it owes?