Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios.

-The current ratio for National Textile is
A)1.20.
B)1.75.
C).67.
D)1.50.

Question

Use this balance sheet and income statement to answer the following question.Use ending balances whenever average balances are required for computing ratios.

-The current ratio for National Textile is
A)1.20. 
B)1.75. 
C).67. 
D)1.50.

Quizplus · Accepted Answer

Current Ratio = Current Assets / Current Liabilities
= $262,000 / $174,000
= 1.50

Use This Balance Sheet and Income Statement to Answer the Following