Freiman Corporation's most recent balance sheet and income statement appear below: The current ratio at the end of Year 2 is closest to:

Question

Freiman Corporation's most recent balance sheet and income statement appear below:  The current ratio at the end of Year 2 is closest to:

Quizplus · Accepted Answer

Current ratio=Current assets/Current liabilities
Current assets at the end of Year 2= $1,540+ $820+ $350+ $590=$3,300
Current liabilities at the end of Year 2= $1,330+ $765=$2,095
Current ratio at the end of Year 2= $3,300/ $2,095= 1.57 which is closest to 1.97 (Option B)

Freiman Corporation's Most Recent Balance Sheet and Income Statement Appear