Acme Auto Supplies

Balance Sheet

December 31, 2017

Cash $ 60,000 Accounts Payable $ 65,000

Prepaid Insurance 40,000 Salaries Payable 10,000

Accounts Receivable 50,000 Mortgage Payable 90,000

Inventory 70,000 Total Liabilities $165,000

Land held for investment 80,000

Land 95,000

Building $100,000 Common Stock $120,000

Less Accumulated Retained Earnings 250,000

Depreciation (30,000) 70,000 Total stockholders equity $370,000

Trademark 70,000 Total Liabilities and

Total Assets $535,000 Stockholders Equity $535,000

The current ratio is

a. 1.86: 1.

b. 2.00: 1.

c. 3.38: 1.

d. 2.93: 1.