Macmillan Corporation has provided the following financial data:
Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share.
-The company's current ratio at the end of Year 2 is closest to:
A) 0.83
B) 1.96
C) 0.45
D) 0.37

Question

Macmillan Corporation has provided the following financial data:
   Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share.
-The company's current ratio at the end of Year 2 is closest to:
A) 0.83 
B) 1.96 
C) 0.45 
D) 0.37

Quizplus · Accepted Answer

Current ratio = Current assets ÷ Current liabilities
= $590,000 ÷ $301,000 = 1.96 (rounded)

Macmillan Corporation Has Provided the Following Financial Data