A company's trial balance included the following account balances: $\begin{array}{lr}
\text { Accounts Payable } & 19,207 \
\text { Accounts Receivable } & 81,336 \
\text { Cash } & 73,324 \
\text { Income Tax Payable } & 3,512 \
\text { Inventory } & 25,816 \
\text { Note Payable, due in two years } & 1,709 \
\text { Equipment } & 54,128 \
\text { Stockholders'Equity } & 202,808 \
\text { Supplies } & 5,512 \
\text { Wages Payable } & 12,880
\end{array}$ What is the amount of the current ratio? (Round your answer to 2 decimal places. )

Question

Quizplus · Accepted Answer

The current ratio is calculated as Current Assets / Current Liabilities. Current Assets include Cash, Accounts Receivable, Inventory, and Supplies, totaling $185,988. Current Liabilities include Accounts Payable, Income Tax Payable, and Wages Payable, totaling $35,599. The current ratio is $185,988 / $35,599 = 5.22.

A Company's Trial Balance Included the Following Account Balances What Is the Amount of the Current Ratio? (Round Your