Use the information in the adjusted trial balance presented below:

-To calculate the current ratio for Wicked Wicker Company:
A)1.87.
B).54.
C)3.92.
D)1.77.
E)1.60.

Question

Use the information in the adjusted trial balance presented below:

-To calculate the current ratio for Wicked Wicker Company: 
A)1.87. 
B).54. 
C)3.92. 
D)1.77. 
E)1.60.

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Wicked Wicker Company has current assets of $1,000,000 and current liabilities of $535,000. Therefore, the current ratio is $1,000,000 / $535,000 = 1.87.

Use the Information in the Adjusted Trial Balance Presented Below