Refer to the following selected financial information from Fennie's, LLC. Compute the company's current ratio for Year 2.
A) 2.26.
B) 1.98.
C) 2.95.
D) 3.05.
E) 1.88.

Question

Refer to the following selected financial information from Fennie's, LLC. Compute the company's current ratio for Year 2. 
A) 2.26. 
B) 1.98. 
C) 2.95. 
D) 3.05. 
E) 1.88.

Quizplus · Accepted Answer

Current Ratio= Current Assets/Current Liabilities
For Year 2:
Current Assets= $52,000+$23,500+$20,500= $96,000
Current Liabilities= $31,500
Current Ratio= $96,000/$31,500= 3.05

Refer to the Following Selected Financial Information from Fennie's, LLC