The following selected information relates to Candle Company for the past two years. What is the current ratio for the current year?
A)1)00
B)4)77
C)1)75
D)0)42

Question

The following selected information relates to Candle Company for the past two years.  What is the current ratio for the current year?
A)1)00 
B)4)77 
C)1)75 
D)0)42

Quizplus · Accepted Answer

The formula for calculating the current ratio is:
Current Ratio = Current Assets ÷ Current Liabilities

Current Year:
Current Assets = $104,000
Current Liabilities = $59,200
Current Ratio = $104,000 ÷ $59,200 = 1.75

Therefore, the current ratio for the current year is 1.75. Option C is the correct answer.

The Following Selected Information Relates to Candle Company for the Past