Selected information from the 2011 and 2010 financial statements of SCL Corporation is presented below:

Refer to the SCL Corporation information above. SCL's current ratio as of December 31, 2011, is
A) 2.84 to 1.
B) 3.37 to 1.
C) 2.91 to 1.
D) 3.33 to 1.

Question

Selected information from the 2011 and 2010 financial statements of SCL Corporation is presented below:

Refer to the SCL Corporation information above. SCL's current ratio as of December 31, 2011, is
A) 2.84 to 1. 
B) 3.37 to 1. 
C) 2.91 to 1. 
D) 3.33 to 1.

Quizplus · Accepted Answer

Current ratio is calculated by dividing current assets by current liabilities. 
Current ratio as of December 31, 2011, for SCL Corporation = (Current Assets of 134,600+42,400)/46,400 = 2.91 to 1.

Selected Information from the 2011 and 2010 Financial Statements of SCL