The following financial statement information is available for Houser Corporation: $$\begin{array} { l r r }
& { 2013 } &{ 2012 } \
\text { Inventory } & \$ 44,000 & \$ 43,000 \
\text { Current assets } & 81,000 & 106,000 \
\text { Total assets } & 432,000 & 358,000 \
\text { Current liabilities } & 30,000 & 36,000 \
\text { Total liabilities } & 102,000 & 88,000
\end{array}$$ The current ratio for 2013 is

Question

The following financial statement information is available for Houser Corporation: $$\begin{array} { l r r } 
&  { 2013 } &{ 2012 } \
\text { Inventory } & \$ 44,000 & \$ 43,000 \
\text { Current assets } & 81,000 & 106,000 \
\text { Total assets } & 432,000 & 358,000 \
\text { Current liabilities } & 30,000 & 36,000 \
\text { Total liabilities } & 102,000 & 88,000
\end{array}$$ The current ratio for 2013 is

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. For 2013, the current ratio is 81,000 / 30,000 = 2.7:1.

The Following Financial Statement Information Is Available for Houser Corporation