Excerpts from Sydner Corporation's most recent balance sheet appear below:
Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
-The current ratio at the end of Year 2 is closest to:
A) 1.67
B) 0.32
C) 0.80
D) 0.41

Question

Excerpts from Sydner Corporation's most recent balance sheet appear below:
  Sales on account in Year 2 amounted to $1,390 and the cost of goods sold was $900.
-The current ratio at the end of Year 2 is closest to:
A) 1.67 
B) 0.32 
C) 0.80 
D) 0.41

Quizplus · Accepted Answer

Current ratio = Current assets ÷ Current liabilities = $600 ÷ $360 = 1.67 (rounded)

Excerpts from Sydner Corporation's Most Recent Balance Sheet Appear Below