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Purple Company Has the Following Data Available Current Liabilities What Is the Current Ratio for Purple Company in 2X13

Question 74

Multiple Choice

Purple Company has the following data available:  Current Assets: 2X132X122X11 Cash $25$20$15 Accounts Receivable 907060 Inventcry 655040 Prepaid Rent 10155 Total Current Assets $190$155$120 Total Long-term Assets $60$60$55\begin{array} { l l l l } \text { Current Assets: } & 2X13 & 2 X12 & 2 X11 \\\quad \text { Cash } & \$ 25 & \$ 20 & \$ 15 \\\quad \text { Accounts Receivable } & 90 & 70 & 60 \\\text { Inventcry } & 65 & 50 & 40 \\\quad \text { Prepaid Rent } & \underline { 10 } & \underline { 15 } & \underline { 5 } \\\text { Total Current Assets } & \underline { \$ 190 } & \underline { \$ 155 } & \underline { \$ 120 } \\\text { Total Long-term Assets } & \$ 60 & \$ 60 & \$ 55\end{array}
Current Liabilities:
 Accounts Payable $50$30$20 Wages Payable 20105 Taxes Payable 10515 Current Long-Term Debt 10155 Total Curent Liabilities $90$60$45 Total Long-term Liabilities $35$45$50\begin{array} { c l l l } \text { Accounts Payable } & \$ 50 & \$ 30 & \$ 20 \\\text { Wages Payable } & 20 & 10 & 5 \\\text { Taxes Payable } & 10 & 5 & 15 \\\text { Current Long-Term Debt } & \underline { 10 } & \underline { 15 } & 5 \\\text { Total Curent Liabilities } & \underline { \$ 90 } & \underline { \$ 60 } & \$ 45 \\\text { Total Long-term Liabilities } & \$ 35 & \$ 45 & \$ 50\end{array}
What is the current ratio for Purple Company in 2X13? Has the current ratio improved or not improved since 2X12?


A) 2.11,improved
B) 0.76,improved
C) 0.76,not improved
D) 0.36,improved
E) 2.11,not improved

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