Question

Exhibit 4.1 5 The balance sheet and income statement shows below are for de me. Note that before marrin charge do wytwo delt
Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities $18,630 8,370 6,000 $33,000 Long-ter
Earnings before interest and taxes (EBIT) Less interest Earnings before taxes (EBT) Taxes Net income 1,680 $4,200 900 $3,300
0 0
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Answer #1

Answer: The correct option is b i.e. 1.09

Current Ratio = Current Assets / Current Liabilities
Current Ratio = $36,000 / $33,000
Current Ratio = 1.09

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