The following financial statement information is available for Buil Corporation: $\begin{array}{lrr}
&2017&2016\
\text { Inventory } & \$ 44,000 & \$ 43,000 \
\text { Current assets } & 80,000 & 106,000 \
\text { Total assets } & 432,000 & 358,000 \
\text { Current liabilities } & 25,000 & 36,000 \
\text { Total liabilities } & 102,000 & 88,000
\end{array}$ The current ratio for 2017 is
A) .31:1.
B) 3.2:1.
C) 1.5:1.
D) 4.24:1.

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. For 2017, the current ratio is 80,000 / 25,000 = 3.2:1.

The Following Financial Statement Information Is Available for Buil Corporation