Financial statements for Maraby Corporation appear below: Maraby Corporation's current ratio at the end of Year 2 was closest to:
A) 1.34
B) 1.72
C) 0.60
D) 0.44

Question

Financial statements for Maraby Corporation appear below:  Maraby Corporation's current ratio at the end of Year 2 was closest to:
A) 1.34 
B) 1.72 
C) 0.60 
D) 0.44

Quizplus · Accepted Answer

Current ratio = Current Assets / Current Liabilities
At the end of Year 2, Maraby Corporation's current ratio was:
= $4,000,000 / $2,325,000
= 1.72
Therefore, the closest answer choice is B.

Financial Statements for Maraby Corporation Appear Below: Maraby Corporation's