Answer:
1.93
Explanation:
Computation for current ratio
Using this formula
Current ratio= Total Current assets÷ Total Current liabilities
Let plug in the formula
Where ,
CURRENT ASSETS=Cash $35,000 + Accounts receivable + $150,000 + Land $100,000+Inventory $180,000 +Prepaid expenses $8,000
Total Current assets=$473,000
CURRENT LIABILITIES =Accounts payable $130,000 + Short-term notes payable +$8,000 Unearned revenue $6,000 + Long-term liabilities $100,000
Total Current liabilities =$244,000
Hence,
Current ratio=$473,000/$244,000
Current ratio=1.93
Therefore Current ratio will be 1.93