Question

Question 3 2015 2014 2015 Assets Current Assets Not yet answered $45,000 Points out of 10.00 Flag question Accounts Receivable Credit Card Receivable Marketable Securities Notes Receivable Inventory Prepaid Expenses Total Current Assets $25,000 $5,000 $7,000 $20,000 $30,000 $32,000 $40,000 $159,000 $23,000 $4,500 $6,000 $18,000 $25,000 $27,000 $36,000 $139,500 Revenues Sales Cash Sales A/R Sales Credit Card Sales Toual Sales Cost of Sales Gross Profit $21,000 $76,000 $142,000 $38.340 $103,660 Direct Operating Expenses Payroll Expenses Other Expenses Total Departmental Expenses $14,200 $12,780 $26.980 Fixed Assets Equipment Furniture Building Total Fixed Assets Less Acc. Depreciation Net Fixed Assets Gross Operating Income $76,680 $210,000 $80,000 $400,000 $690,000 $42.000 $648,000 $200,000 $75,000 $400,000 $675,000 $39,000 $636.000 Total Assets $807,000 $775,500 Undistributed Operating Expenses Administrative & General $5,680 Sales & Marketing $9,940 Property & Maintenance $5,680 Utilities $4,260 Total Und. Op. Exp 525,560 Income Before Fixed Charges 351,120 Liabilities & Equity Current Lawnies Accounts Payable Notes Payable Unearned Revenue Current Mortgage Payable Accrued Expenses Payable Total Current Liabilities $25,000 $50,000 $25,000 $13,000 $15,000 $128,000 $22,000 $60,000 $20,000 $11,000 $13,600 $126,600 Fixed Charges Property Taxes Insurance Total Fixed Charges $11,360 $8,520 $19,880 EBITDA $31,240 Long Term Liabilities Loan Mortgage Total Long-Term Liabilities $100,000 $300,000 $400,000 $90,000 $310.000 $400,000 Interest Expense Depreciation $3,195 57,100 Total Liabilities $528,000 $526,600 Carnings Before Tax Income Tax Net Income $20,945 $6,284 $14,662 $250.000 Owners' Equity Capital Retained Earnings Total Equity $21,000 $238,900 $10,000 $248,900 $279,000 Total Equity & Liabilities S807.000 $775,500 What is the CURRENT RATIO for 2015? Select one: a. 0.68 b. 1.10 O 01.24 d.0.60

Answer 1

Answer:- (C) 1.24

Current Ratio =	Current Assets/Current Liabilities
=	$159,000 /$128,000
=	1.24