Mccaughey Corporation's most recent balance sheet and income statement appear below:

-The current ratio at the end of Year 2 is closest to:
A) 0.34
B) 0.30
C) 1.31
D) 1.12

Question

Mccaughey Corporation's most recent balance sheet and income statement appear below:

-The current ratio at the end of Year 2 is closest to:
A) 0.34 
B) 0.30 
C) 1.31 
D) 1.12

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities.

Current ratio at the end of Year 2 = $210,000 / $160,000 = 1.31

Therefore, the closest answer is C) 1.31.

Mccaughey Corporation's Most Recent Balance Sheet and Income Statement Appear