Based on the following information from Schrute Company's balance sheet, calculate the current ratio. $$\begin{array} { | l | r | }
\hline \text { Current assets } & \$ 87,000 \
\hline \text { Investments } & 50,000 \
\hline \text { Plant assets } & 220,000 \
\hline \text { Current liabilities } & 39,000 \
\hline \text { Long-term liabilities } & 90,000 \
\hline \text { A. Schrute, Capital } & 228,000 \
\hline
\end{array}$$
A).44.
B)2.23.
C)1.06.
D)3.51.
E)3.33.

Question

Based on the following information from Schrute Company's balance sheet, calculate the current ratio. $$\begin{array} { | l | r | } 
\hline \text { Current assets } & \$ 87,000 \
\hline \text { Investments } & 50,000 \
\hline \text { Plant assets } & 220,000 \
\hline \text { Current liabilities } & 39,000 \
\hline \text { Long-term liabilities } & 90,000 \
\hline \text { A. Schrute, Capital } & 228,000 \
\hline
\end{array}$$
A).44.
B)2.23.
C)1.06.
D)3.51.
E)3.33.

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Here, the current assets are $87,000 and the current liabilities are $39,000. So, the current ratio is $87,000 / $39,000 = 2.23.

Based on the Following Information from Schrute Company's Balance Sheet