Question
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows: Assets Liabilities & Stockholders' Equity Cash $ 107,000
A condensed balance sheet for Bradford Corporation prepared at the end of the year appears as follows: |
Assets | Liabilities & Stockholders' Equity | |||||
Cash | $ | 107,000 | Notes payable (due in 6 months) | $ | 41,000 | |
Accounts receivable | 140,000 | Accounts payable | 124,000 | |||
Inventory | 260,000 | Long-term liabilities | 331,000 | |||
Prepaid expenses | 60,000 | Capital stock, $5 par | 300,000 | |||
Plant & equipment (net) | 570,000 | Retained earnings | 431,000 | |||
Other assets | 90,000 | |||||
Total | $ | 1,227,000 | Total | $ | 1,227,000 | |
During the year the company earned a gross profit of $1,116,000 on sales of $2,950,000. Accounts receivable, inventory, and plant assets remained almost constant in amount throughout the year, so year-end figures may be used rather than averages. |
a. Compute the current ratio. (Round your answer to 2 decimal places.)
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