The December 31,2016 balance sheet of Rowan Company shows current assets of $32,000 and current liabilities of $20,000.On January 1,2017 the company recorded the following entries:
After the two journal entries were recorded,the company current ratio is:

A)2 to 1
B)1.6 to 1
C)2.4 to 1
D)2.1 to 1

Question

The December 31,2016 balance sheet of Rowan Company shows current assets of $32,000 and current liabilities of $20,000.On January 1,2017 the company recorded the following entries:
After the two journal entries were recorded,the company current ratio is:

A)2 to 1 
B)1.6 to 1 
C)2.4 to 1 
D)2.1 to 1

Quizplus · Accepted Answer

The Answer of The December 31,2016 balance sheet of Rowan Company shows current assets of $32,000 and current liabilities of $20,000.On January 1,2017 the company recorded the following entries:
After the two journal entries were recorded,the company current ratio is:

A)2 to 1 
B)1.6 to 1 
C)2.4 to 1 
D)2.1 to 1

The December 31,2016 Balance Sheet of Rowan Company Shows Current