The following information relates to Truman Unlimited for the past two years.

The current ratio for the current year is closest to

Question

The following information relates to Truman Unlimited for the past two years.

The current ratio for the current year is closest to

Quizplus · Accepted Answer

To find the current ratio, we need to divide the current assets by the current liabilities. 
For the current year: 
Current assets = $271,000 + $101,000 = $372,000 
Current liabilities = $176,000 
Current ratio = $372,000/$176,000 = 2.11 (rounded) 
Therefore, the closest option is D) 1.97.

The Following Information Relates to Truman Unlimited for the Past