Exhibit 4-1 Given the following information for Blue Bell Company:
-Refer to Exhibit 4-1. Blue Bell's current ratio at December 31, 2014 was
A) 3.67 times
B) 2.33 times
C) 1.33 times
D) 0.43 times

Question

Exhibit 4-1 Given the following information for Blue Bell Company: 
-Refer to Exhibit 4-1. Blue Bell's current ratio at December 31, 2014 was
A) 3.67 times 
B) 2.33 times 
C) 1.33 times 
D) 0.43 times

Quizplus · Accepted Answer

- The current ratio is calculated as current assets divided by current liabilities.
- As of December 31, 2014, Blue Bell's current assets were $233,000 and current liabilities were $100,000.
- Thus, the current ratio can be calculated as follows: 
    Current ratio = Current assets / Current liabilities 
    Current ratio = $233,000 / $100,000 
    Current ratio = 2.33 times 
- Therefore, the best choice is B) 2.33 times.

Exhibit 4-1 Given the Following Information for Blue Bell Company