Table 4.1
Bacon Signs
2013 Income Statement (000's)

Bacon Signs
2012 and 2013 Balance Sheets (000's)

-Use the information to determine the 2013 current ratio for Bacon Signs.
A)$3,908/$2,943 = 1.33
B)$3,527/$2,250 = 1.57
C)$3,170/$2,943 = 1.08
D)$713/$2,943 = 0.24

Question

Table 4.1
Bacon Signs
2013 Income Statement (000's)
 
Bacon Signs
2012 and 2013 Balance Sheets (000's)

-Use the information to determine the 2013 current ratio for Bacon Signs.
A)$3,908/$2,943 = 1.33 
B)$3,527/$2,250 = 1.57 
C)$3,170/$2,943 = 1.08 
D)$713/$2,943 = 0.24

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Option A correctly calculates the current ratio as $3,908 (current assets) divided by $2,943 (current liabilities), resulting in a current ratio of 1.33.

Table 4.1 Bacon Signs