Financial statements for Oram Company appear below: Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610.
-Oram Company's current ratio at the end of Year 2 was closest to:
A) 1.24
B) 0.37
C) 1.20
D) 0.47

Question

Financial statements for Oram Company appear below:   Dividends during Year 2 totaled $161 thousand, of which $10 thousand were preferred dividends. The market price of a share of common stock on December 31, Year 2 was $610.
-Oram Company's current ratio at the end of Year 2 was closest to:
A) 1.24 
B) 0.37 
C) 1.20 
D) 0.47

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. The choice closest to a typical current ratio value is 1.24.

Financial Statements for Oram Company Appear Below: Dividends