The following balance sheet information is provided for Duke Company for Year 2:

What is the company's current ratio? (Round your answer to 2 decimal places. )
A)2.53
B)1.16
C)1.31
D)3.79

Question

The following balance sheet information is provided for Duke Company for Year 2:

What is the company's current ratio? (Round your answer to 2 decimal places. )
A)2.53 
B)1.16 
C)1.31 
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