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

Current Ratio = Total current assets / Total current liabilities
Current Ratio = (Cash $50,000 + Short-term Investments $19,000 + Net Accounts Receivable $46,000 + Merchandise Inventory $48,000)/ (Accounts Payable $127,000 + Salaries Payable $15,000)
Current Ratio = $163,000 / $142,000
Current Ratio = 1.15

The Financial Statements for Barrington Service Company Include the Following