1. With the information given below, compute the current ratio (10 pts)

	Debit	Credit
Cash	$12,000
Accounts Receivable	9,000
Prepaid Rent	6,000
Prepaid Insurance	2,300
Office Supplies	3,200
Building	52,200
Accumulated DepreciationBuilding		$11,500
Equipment	35,000
Accumulated DepreciationEquipment		7,000
Land	30,000
Accounts Payable		6,550
Salaries Payable		4,000
Interest Payable		2,240
Mortgage Payable (long term)		51,200
R. Lee, Capital (deficit)	5,590
R. Lee, Withdrawals	20,000
Service Revenue		190,000
Salaries Expense	38,000
Insurance Expense	5,000
Rent Expense	12,000
Utilities Expense	15,000
Advertising Expense	9,000
Depreciation ExpenseBuilding	10,000
Depreciation ExpenseEquipment	7,000
Office Supplies Expense	1,200
Total	$272,490	$272,490