Mobile Company
Mobile Company manufactures computer technology devices. Selected financial data for Mobile is presented below; use the information to answer the following questions:

Refer to the information for Mobile Company . Mobile's current ratio in 2010 was:
A) 1.07
B) 1.45
C) 1
D) .69

Question

Mobile Company
Mobile Company manufactures computer technology devices. Selected financial data for Mobile is presented below; use the information to answer the following questions:
  
Refer to the information for Mobile Company . Mobile's current ratio in 2010 was:
A) 1.07 
B) 1.45 
C) 1 
D) .69

Quizplus · Accepted Answer

To calculate the current ratio, we divide current assets by current liabilities.

For 2010: 
Current Assets = $142,000 + $8,000 = $150,000 
Current Liabilities = $103,000

Current Ratio = $150,000 / $103,000 = 1.45

Therefore, the current ratio for Mobile Company in 2010 was 1.45.

Mobile Company Mobile Company Manufactures Computer Technology Devices. Selected Financial Data for Data