Signal Hill Ltd.had the following accounts on their balance sheet: Cash $10,000, Accounts receivable $50,000, Inventory $45,000, Prepaid rent $2,500, Long-term receivable $12,000, Accounts payable $27,500, Interest payable $1,200, Current portion of long-term bank debt $50,000, and Long-term debt $100,000.What was their current ratio?

Question

Quizplus · Accepted Answer

Current assets are $107,500 and current liabilities are $78,700, so the current ratio is 1.36.