Using the following balance sheet and income statement data what is the current ratio? $$\begin{array}{l}
\begin{array} { l r l c }
\text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \
\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \
\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000
\end{array}\
\text { Total assets } \quad 90,000
\end{array}$$
A)0.78 : 1
B)3.33 : 1
C)0.57 : 1
D)1.75: 1

Question

Using the following balance sheet and income statement data what is the current ratio? $$\begin{array}{l}
\begin{array} { l r l c } 
\text { Current assets } & \$ 21,000 & \text { Net income } & \$ 45,000 \
\text { Current liabilities } & 12,000 & \text { Stockholders' equity } & 63,000 \
\text { Average assets } & 132,000 & \text { Total liabilities } & 27,000
\end{array}\
\text { Total assets } \quad 90,000
\end{array}$$
A)0.78 : 1
B)3.33 : 1
C)0.57 : 1
D)1.75: 1

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities: $ \frac{21,000}{12,000} = 1.75 $.

Using the Following Balance Sheet and Income Statement Data What