On December 31, 2010, Stanley Co. had current assets of $20,000 (all cash) and current liabilities of $9,000 in accounts payable, resulting in a current ratio of 2.22. On December 31, 2010, Stanley purchases $6,000 of inventory on account. Calculate Stanley's current ratio after the inventory has been purchased.

Question

Quizplus · Accepted Answer

The Answer of On December 31, 2010, Stanley Co. had current assets of $20,000 (all cash) and current liabilities of $9,000 in accounts payable, resulting in a current ratio of 2.22. On December 31, 2010, Stanley purchases $6,000 of inventory on account. Calculate Stanley's current ratio after the inventory has been purchased.