Excerpts from Zorra Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,370 and the cost of goods sold was $850.
-The current ratio at the end of Year 2 is closest to:
A)0.38
B)2.62
C)0.52
D)0.74

Question

Excerpts from Zorra Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,370 and the cost of goods sold was $850.
-The current ratio at the end of Year 2 is closest to:
A)0.38 
B)2.62 
C)0.52 
D)0.74

Quizplus · Accepted Answer

Current ratio = Current assets F1F1F1S1F1F1F10 Current liabilities = $680 F1F1F1S1F1F1F10 $260 = 2.62

Excerpts from Zorra Corporation's Most Recent Balance Sheet Appear Below