The financial statements for Barrington Service Company include the following items:

Compute the current ratio for 2018.(Round answer to two decimal places. )

Question

The financial statements for Barrington Service Company include the following items:

Compute the current ratio for 2018.(Round answer to two decimal places. )

Quizplus · Accepted Answer

A)
Current Ratio = Total current assets / Total current liabilities
Current Ratio = (Cash $47,000 + Short-term Investments $16,000 + Net Accounts Receivable $56,000 + Merchandise Inventory $51,000)/ (Accounts Payable $130,000 + Salaries Payable $16,000)
Current Ratio = $170,000 / $146,000
Current Ratio = 1.16

The Financial Statements for Barrington Service Company Include the Following