$$\begin{array} { | l | r | }
\hline \text { Current assets } & 306,450 \
\hline \text { Plant assets } & 388,000 \
\hline \text { Current Liabilities } & 107,800 \
\hline \text { Net sales } & 676,000 \
\hline \text { Net Income } & 75,000 \
\hline
\end{array}$$
-Refer to the following selected financial information from Frankle Corp.Compute the company's current ratio.

A) 6.44.
B) 2.84.
C) 6.27.
D) 3.60.
E) 1.44.

Question

$$\begin{array} { | l | r | } 
\hline \text { Current assets } & 306,450 \
\hline \text { Plant assets } & 388,000 \
\hline \text { Current Liabilities } & 107,800 \
\hline \text { Net sales } & 676,000 \
\hline \text { Net Income } & 75,000 \
\hline
\end{array}$$
-Refer to the following selected financial information from Frankle Corp.Compute the company's current ratio.

A) 6.44.
B) 2.84.
C) 6.27.
D) 3.60.
E) 1.44.

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities: $ \frac{306,450}{107,800} \approx 2.84 $.

-Refer to the Following Selected Financial Information from Frankle Corp