The financial statements of Midwest Tours are given below. Note: The common shares are trading in the stock market for $36 each.
Refer to the financial statements of Midwest Tours.The firm's current ratio for 2009 is
A)1.82.
B)1.03.
C)1.30.
D)1.65.

Question

The financial statements of Midwest Tours are given below.   Note: The common shares are trading in the stock market for $36 each.
Refer to the financial statements of Midwest Tours.The firm's current ratio for 2009 is
A)1.82. 
B)1.03. 
C)1.30. 
D)1.65.

Quizplus · Accepted Answer

The current ratio for Midwest Tours in 2009 can be calculated by dividing current assets ($745,000) by current liabilities ($575,000), which gives a result of 1.30.

The Financial Statements of Midwest Tours Are Given Below