Skyline, Inc.
The balance sheet of Skyline Inc.includes the following items:
-Read the information about Skyline, Inc.What is Skyline's current ratio?
A)0.8 to 1
B)1.6 to 1
C)1.2 to 1
D)2.5 to 1

Question

Skyline, Inc.
The balance sheet of Skyline Inc.includes the following items: 
-Read the information about Skyline, Inc.What is Skyline's current ratio?
A)0.8 to 1 
B)1.6 to 1 
C)1.2 to 1 
D)2.5 to 1

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. From the balance sheet, we can see that Skyline, Inc. has current assets of $240,000 and current liabilities of $200,000. Therefore, the current ratio is 1.2 to 1 ($240,000 / $200,000 = 1.2).

Skyline, Inc. The Balance Sheet of Skyline Inc.includes the Following Items