Using the following balance sheet and income statement data, what is the current ratio? $\begin{array}{lrlr}
\text { Current assets } & \$ 7,000 & \text { Net income } & \$ 15,000 \
\text { Current liabilities } & 4,000 & \text { Stockholders' equity } & 21,000 \
\text { Average assets } & 44,000 & \text { Total liabilities } & 9,000\\text { Total assets } \quad 30,000
\end{array}$ Average common shares outstanding was 10,000.
A) 0.78 : 1
B) 3.33 : 1
C) 0.57 : 1
D) 1.75: 1

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Here, it is $7,000 / $4,000 = 1.75 : 1.

Using the Following Balance Sheet and Income Statement Data, What