Calculate the current ratio using the following information: (Round your answer to two decimal places.) $$\begin{array} { l l }
\text { Cash } & \$ 5,000 \
\text { Accounts Receivable } & 1,100 \
\text { Prepaid Rent } & 1,000 \
\text { Land } & 40,000 \
\text { Equipment } & 4,000 \
\text { Accumulated Depreciation } & 1,200 \
\text { Accounts Payable } & 3,000 \
\text { Salaries Payable } & 900 \
\text { Notes Payable-long term } & 9,000
\end{array}$$
A) 1.82
B) 2.37
C) 3.09
D) 1.56

Question

Calculate the current ratio using the following information: (Round your answer to two decimal places.) $$\begin{array} { l l } 
\text { Cash } & \$ 5,000 \
\text { Accounts Receivable } & 1,100 \
\text { Prepaid Rent } & 1,000 \
\text { Land } & 40,000 \
\text { Equipment } & 4,000 \
\text { Accumulated Depreciation } & 1,200 \
\text { Accounts Payable } & 3,000 \
\text { Salaries Payable } & 900 \
\text { Notes Payable-long term } & 9,000
\end{array}$$
A) 1.82
B) 2.37
C) 3.09
D) 1.56

Quizplus · Accepted Answer

The current ratio is calculated as Current Assets / Current Liabilities. Here, Current Assets = Cash + Accounts Receivable + Prepaid Rent = $5,000 + $1,100 + $1,000 = $7,100. Current Liabilities = Accounts Payable + Salaries Payable = $3,000 + $900 = $3,900. Therefore, Current Ratio = $7,100 / $3,900 = 1.82 (rounded to two decimal places).

Calculate the Current Ratio Using the Following Information: (Round Your