The financial statements of Trenton Office Supply include the following items: $\begin{array}{lrr}
&2019&2018\
\text { Cash } & \$ 47,500 & \$ 49,000 \
\text { Short-term Investments } & 24,000 & 14,000 \
\text { Net Accounts Receivable } & 102,000 & 100,000 \
\text { Merchandise Inventory } & 127,000 & 126,000 \
\text { Total Assets } & 525,000 & 546,000 \
\text { Total Current Liabilities } & 253,000 & 238,000 \
\text { Long-term Note Payable } & 55,000 & 50,000
\end{array}$
What is the 2019 current ratio? (Round your answer to two decimal places.)

Question

The financial statements of Trenton Office Supply include the following items: $\begin{array}{lrr}
&2019&2018\
\text { Cash } & \$ 47,500 & \$ 49,000 \
\text { Short-term Investments } & 24,000 & 14,000 \
\text { Net Accounts Receivable } & 102,000 & 100,000 \
\text { Merchandise Inventory } & 127,000 & 126,000 \
\text { Total Assets } & 525,000 & 546,000 \
\text { Total Current Liabilities } & 253,000 & 238,000 \
\text { Long-term Note Payable } & 55,000 & 50,000
\end{array}$
 What is the 2019 current ratio? (Round your answer to two decimal places.)

Quizplus · Accepted Answer

To calculate the current ratio, we need to divide current assets by current liabilities.

Current Assets = $175,000 + $20,000 = $195,000
Current Liabilities = $146,000

Current Ratio = Current Assets / Current Liabilities
= $195,000 / $146,000
= 1.34 (rounded to two decimal places)

Therefore, the answer is C.

The Financial Statements of Trenton Office Supply Include the Following