Skyline,Inc. The balance sheet of Skyline Inc.includes the following items:
Read the information about Skyline,Inc.What is Skyline's current ratio?

Question

Skyline,Inc. The balance sheet of Skyline Inc.includes the following items:
 Read the information about Skyline,Inc.What is Skyline's current ratio?

Quizplus · Accepted Answer

Current ratio is calculated by dividing current assets by current liabilities. 
Current assets =  $6,000 + $2,500 + $1,000 = $9,500 
Current liabilities = $5,000 + $2,500 = $7,500
Current ratio =  $9,500 / $7,500 = 1.27 (approx)
Therefore, Skyline's current ratio is 1.2 to 1 (closest option is C).