Question

Question 13 2 pts Use the following data to calculate the current ratio. KLONDIKE OFFICE SUPPLIES Balance Sheet December 31, 2025 Cash $195,000 Accounts Payable $210,000 Accounts Receivable 150,000 Salaries & Wapes Payable 30,000 Inventory 165.000 Mortgage Payable 20.000 Prepadne 90.000 Total abilities 480.000 Stock Investments Long Term 255.000 Land 270,000 $315.000 Common Stock Buildings Les Accumulated Depreciation 360.000 0.000) 275.000 250.000 Goodwil Toilets 210.000 $1,500,000 Total Stockholders' Equity Totul e Stokholtury Boy 110.000 $1.500.000 1.44:1 2.86: 1 2.13: 1 250: 1 • Previous Next MacBook

Answer 1

Current Ratio = Current assets/Current liabilities

Current Assets = Cash 195,000 + Accounts Receivable 150,000 + Inventory 165,000 + Prepaid insurance 90,000 = 600,000

Current Liabilities = Accounts Payable 210,000 + Salaries and Wages payable 30,000 = 240,000

= 600,000/240,000

= 2.50 : 1

Option D