Question
A company has the following information on its balance sheet. Cash: $10,000 Accounts receivable: $15,000 Inventory: $20,000 Total current assets: $45,000 Accounts payable: $5,000 Deferred
A company has the following information on its balance sheet.
Cash: $10,000 Accounts receivable: $15,000 Inventory: $20,000 Total current assets: $45,000
Accounts payable: $5,000 Deferred revenue: $6,000 Total current liabilities: $11,000
Calculate the company's current ratio.
A) 4.90
B) 1.36
C) 1.81
D) 4.09
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Cornerstones of Financial and Managerial Accounting
Authors: Rich Jones, Mowen, Hansen, Heitger
1st Edition
9780538751292, 324787359, 538751290, 978-0324787351
