Based on the following data, what is the current ratio? Accounts payable………………………….. $ 64,000 Accounts receivable….………………….. 114
,000 Accumulated depreciation.............. 160,000 Cash………………………………..……………. 60,000 Equipment……................................... 1,500,000 Inventory………………………………………. 138,000 Long-term investments………..………. 160,000 Notes payable (due in 3 months)…… 56,000 Notes payable (due in 2 years)......... 200,000 Patents……...............……………………… 100,000 Prepaid insurance…………………………... 2,000 Short-term investments…………….…… 80,000
1 answer:
Answer:
Current ratio = 3.28
Explanation:
Current Ratio = Current Asset (CA) / Current Liabilities (CL)
In this case:
Current Ratio = Current Asset / Current Liabilities
Current Ratio = 394,000 / 120,000
Please, for the accounts classification see attached file. You will find the amount of current and long-term assets and liabilities there.
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