Question

The financial statements of Trenton Office Supply include the following​ items: 2019 2018 Cash $ 46 comma 500 $ 43 comma 000 Shortminusterm Investments 34 comma 000 19 comma 000 Net Accounts Receivable 102 comma 000 101 comma 000 Merchandise Inventory 129 comma 000 126 comma 000 Total Assets 531 comma 000 553 comma 000 Total Current Liabilities 257 comma 000 238 comma 000 Longminusterm Note Payable 59 comma 000 56 comma 000 What is the 2019 current​ ratio? (Round your answer to two decimal​ places.)

Answer 1

Answer:

1.21

Explanation:

Current Ratio = Current Asset / Current Liabilities

= (Cash + Shortminusterm Investments + Net accounts receivable + Inventory) / Current Liabilities

= ( 46500 + 34000 + 102000 + 129000) / 257000

= 1.21

Answer 2

Answer:

Current ratio=Current Assets/Current liabilities

Explanation:

Cash  46,500

Short term investments 34,000

A/R-Net            102,000

Inventory         129,000

Total Current Assets $311,500

Current Liabilities $257,000

Current Ratio=$311,500/$257,000

Current ratio=1.21