Use the table for the question(s)below.

-Refer to the statement of financial position above.Luther's current ratio for 2015 is closest to:
A)0.84
B)0.87
C)1.15
D)1.19
E)0.77

Question

Use the table for the question(s)below.
  
-Refer to the statement of financial position above.Luther's current ratio for 2015 is closest to:
A)0.84 
B)0.87 
C)1.15 
D)1.19 
E)0.77

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. 
For 2015, the current assets total $160,000 and the current liabilities total $134,400. 
Therefore, the current ratio is: 
Current Ratio = Current Assets / Current Liabilities 
Current Ratio = $160,000 / $134,400 
Current Ratio = 1.19 
The closest answer choice is D, 1.19.

Use the Table for the Question(s)below