The following information is from Acme's annual report for the years ended Dec. 31:

-Refer to the Acme annual report above.Calculate the current ratio for 2010.
A)0)3
B)0)9
C)1)7
D)2)9

Question

The following information is from Acme's annual report for the years ended Dec. 31:

-Refer to the Acme annual report above.Calculate the current ratio for 2010.
A)0)3 
B)0)9 
C)1)7 
D)2)9

Quizplus · Accepted Answer

To calculate the current ratio, we need to divide the current assets by current liabilities. Looking at the balance sheet for 2010, we can see that the current assets are $85,000 and the current liabilities are $50,000. When we divide $85,000 by $50,000, we get a current ratio of 1.7. Therefore, the best choice is C.

The Following Information Is from Acme's Annual Report for the Years