Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The current ratio at the end of Year 2 is closest to:

Name: Excerpts from Colter Corporation's most recent balance sheet appear below: Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The current ratio at the end of Year 2 is closest to:
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Question

Excerpts from Colter Corporation's most recent balance sheet appear below:  Sales on account in Year 2 amounted to $1,210 and the cost of goods sold was $720. The current ratio at the end of Year 2 is closest to:

Quizplus · Accepted Answer

Current ratio = Current assets ÷ Current liabilities = $400 ÷ $320 = 1.25

Excerpts from Colter Corporation's Most Recent Balance Sheet Appear Below