Financial statements for Harwich Company for the most recent year appear below: The balances in the Cash, Accounts Receivable, Inventory, Bonds Payable, Common Stock, and Additional Paid-In Capital accounts are unchanged from the beginning of the year. A $0.75 per share dividend was declared and paid during the year. On December 31, Harwich Company's common stock was trading at $24.00 per share.
-Harwich Company's current ratio at December 31 was closest to:
A)1.95
B)2.67
C)1.33
D)2.00

Question

Financial statements for Harwich Company for the most recent year appear below:   The balances in the Cash, Accounts Receivable, Inventory, Bonds Payable, Common Stock, and Additional Paid-In Capital accounts are unchanged from the beginning of the year. A $0.75 per share dividend was declared and paid during the year. On December 31, Harwich Company's common stock was trading at $24.00 per share.
-Harwich Company's current ratio at December 31 was closest to:
A)1.95 
B)2.67 
C)1.33 
D)2.00

Quizplus · Accepted Answer

Current ratio = Current assets F1F1F1S1F1F1F10 Current liabilities
= ($90 + $150 + $150 + $10)F1F1F1S1F1F1F10 ($150 + $25 + $20 + $5)
= $400 F1F1F1S1F1F1F10 $200 = 2.00

Financial Statements for Harwich Company for the Most Recent Year