The financial statements of Trenton Office Supply include the following items: 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:  What is the 2019 current ratio? (Round your answer to two decimal places. )

Quizplus · Accepted Answer

Current Ratio = Total current assets / Total current liabilities
Current Ratio = (Cash $51,500 + Short-term Investments $26,000 + Net Accounts Receivable $94,000 + Merchandise Inventory $135,000)/ $260,000
Current Ratio = $306,500 / $260,000
Current Ratio = 1.18

The Financial Statements of Trenton Office Supply Include the Following