Top of the Town AccountingTop of the Town Accounting

has these account balances at December 31,

20182018:

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Requirements

1.	Calculate Top of the Town Accounting'sTop of the Town Accounting's current ratio.
2.	How much in current assets does Top of the Town AccountingTop of the Town Accounting have for every dollar of current liabilities that it owes?

Requirement 1. Calculate

Top of the Town Accounting'sTop of the Town Accounting's

current ratio. (Round your answer to two decimal places, X.XX.)

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=

Current ratio

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=

Notes Payable, long-term	$12,000		Accounts Payable	$4,200
Prepaid Rent	2,500		Accounts Receivable	6,900
Salaries Payable	2,500		Cash	3,100
Service Revenue	10,600		Depreciation ExpenseEquip.	1,700
Office Supplies	1,300		Equipment	25,000
Accumulated DepreciationEquip.	2,500		Terry, Capital	10,400
Advertising Expense	700		Rent Expense	1,000

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