The following balance sheet information is provided for Duke Company for Year 2: What is the company's current ratio?
A) 1.16
B) 1.31
C) 2.53
D) 3.79

Name: The following balance sheet information is provided for Duke Company for Year 2: What is the company's current ratio? A) 1.16 B) 1.31 C) 2.53 D) 3.79
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Question

The following balance sheet information is provided for Duke Company for Year 2:  What is the company's current ratio?
A) 1.16 
B) 1.31 
C) 2.53 
D) 3.79

Quizplus · Accepted Answer

Current ratio = Current assets ÷ Current liabilities
Current ratio = ($5,400 + $15,500 + $18,000 + $1,600) ÷ ($4,500 + $11,500) = $40,500 ÷ $16,000 = 2.53

The Following Balance Sheet Information Is Provided for Duke Company