Carl's Toy Factory had the following items listed on its balance sheet.Cash,1,590;Accounts receivable,5,746;Accounts payable,9,563;Inventory,7,879;Equipment,35,743;Land,50,000;Buildings,135,487;Mortgage,125,276.Based on this information what was Carl's current ratio?
A)0)77
B)1)59
C)2)14
D)1)37

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Current assets include cash, accounts receivable, and inventory, totaling 15,215. The only current liability is accounts payable, totaling 9,563. The current ratio is 15,215 / 9,563 = 1.59.

Carl's Toy Factory Had the Following Items Listed on Its