Using the following balance sheet and income statement data, what is the current ratio? $\begin{array}{lrlr}
\text { Current assets } & \$ 16,000 & \text { Net income } & \$ 21,000 \
\text { Current liabilities } & 8,000 & \text { Stockholders' equity } & 39,000 \
\text { Average assets } & 80,000 & \text { Total liabilities } & 21,000\\text { Total assets } 60,000
\end{array}$ Average common shares outstanding was 10,000.
A) 2.0 : 1
B) 2.6 : 1
C) 0.5 : 1
D) 2.9 : 1

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Here, it is $16,000 / $8,000 = 2.0 : 1.

Using the Following Balance Sheet and Income Statement Data, What