Question

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Send to Gradebook < Prev --/2 Question 9 View Policies Current Attempt in Progress At December 31, 2019, Susan Wilson Corporation reported current assets of $394,140 and current liabilities of $198,100. The following items may have been recorded incorrectly. 1. Goods purchased costing $20,520 were shipped f.o.b. shipping point by a supplier on December 28. Wilson received and recorded the invoice on December 29, 2019, but the goods were not included in Wilson's physical count of inventory because they were not received until January 4, 2020. 2. Goods purchased costing $13,590 were shipped f.o.b. destination by a supplier on December 26. Wilson received and recorded the invoice on December 31, but the goods were not included in Wilson's 2019 physical count of inventory because they were not received until January 2, 2020. 3. Goods held on consignment from Claudia Kishi Company were included in Wilson's December 31, 2019, physical count of inventory at $12,140. 4. Freight-in of $2,990 was debited to advertising expense on December 28, 2019. Compute the current ratio based on Wilson's balance sheet. (Round ratio to 2 decimal places, e.g. 2.31:1.) The current ratio e Textbook and Media e Textbook Attempts: 0 of 3 used Save for Later Submit Answer (b) The parts of this question must be completed in order. This part will be available when you complete the part above.

Answer 1

Answer:

1.99 times

Calculation:

Current Ratio = Current assets / Current liabilities

	Particulars	Amount
A	Current assets	$ 394,140
B	Current liablites	$ 198,100
A/B	Current Ratio	1.99

In case of any doubt, please comment.