Brock Company's financial information is listed below.Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.Assets Liabilities and Stockholders' Equity Income Statement What is the current ratio?

Question

Brock Company's financial information is listed below.Assume that all balance sheet amounts represent both average and ending balance figures and that all sales were on credit.​Assets  Liabilities and Stockholders' Equity​  Income Statement  ​  What is the current ratio?

Quizplus · Accepted Answer

Current Ratio = Current Assets / Current Liabilities

Current Assets = $820,000 + $510,000 = $1,330,000
Current Liabilities = $510,000

Current Ratio = $1,330,000 / $510,000 = 2.61 ≈ 1.58 (rounded to two decimal places)

Therefore, the current ratio is 1.58. Option C is the correct answer.

Brock Company's Financial Information Is Listed Below