Use this balance sheet and income statement for the first year of operations for Cane Construction to answer the following question.Use ending balances whenever average balances are required for computing ratios.

-The current ratio for Cane Construction is
A)1.75.
B)0.57.
C)1.4.
D)2.0.

Question

Use this balance sheet and income statement for the first year of operations for Cane Construction to answer the following question.Use ending balances whenever average balances are required for computing ratios.

-The current ratio for Cane Construction is

-The current ratio for Cane Construction is
A)1.75. 
B)0.57. 
C)1.4. 
D)2.0.

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. The correct ratio provided is 1.75.

Use This Balance Sheet and Income Statement for the First