The following information has been extracted from the books of the Flanker Company: $\begin{array}{lllr}\text { Current assets: }&&\text { Current liabilities: }\\
\text { Cash } & \$ 86 & \text { Accts payable } & \$ 78 \
\text { Accounts receivable } & 130 & \text { Wages payable } & 68 \
\text { Inventory } & 140 & \text { Taxes payable } & 28\\
\text { Total }&\$356&\text { Total }&\$174
\end{array}$ The current ratio for Flanker Company is _____.
A)0.76
B)1.48
C)2.05
D)2.51

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing total current assets by total current liabilities: $ \frac{356}{174} \approx 2.05 $.

The Following Information Has Been Extracted from the Books of the Flanker