11)

Assume a company provided the following balance sheet:

Current assets:		Current liabilities:
Cash	$ 58,000	Accounts payable	$ 90,000
Accounts receivable	50,000	Accrued liabilities	40,000
Inventory	150,000	Total current liabilities	130,000
Total current assets	258,000	Bonds payable	110,000
Property, plant & equipment, net	380,000	Total liabilities	240,000
		Stockholders equity:
		Common stock	170,000
		Retained earnings	228,000
		Total stockholders equity	398,000
Total assets	$ 638,000	Total liabilities and stockholders equity	$ 638,000

The current ratio is closest to:

Multiple Choice

• 1.98.

• 0.83.

• 1.08.

• 1.73.