1.

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company:

Account Title	Dr			Cr
Cash	$	71,000
Accounts receivable		32,000
Prepaid insurance		13,000
Equipment		260,000
Accumulated depreciationEquipment				$	130,000
Land		111,000
Accounts payable					33,000
Interest payable					6,400
Unearned revenue					9,800
Long-term notes payable					78,000
Z. Taron, Capital					229,800
Totals	$	487,000		$	487,000

• 2.26.

• 0.42.

• 2.36.

• 2.26.

• 2.09.

2.

On April 1, Santa Fe, Inc. paid Griffith Publishing Company $1,728 for a 36-month subscriptions to several different magazines. Santa Fe debited the prepayment to a Prepaid Subscriptions account, and the subscriptions started immediately. What amount should appear in the Prepaid Subscription account for Santa Fe, Inc. after adjustments on December 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?

• $576.

• $1,728.

• 0

• $432.

• $1,296.