The Office Warehouse had the following account balances: Cash, $25,000; Accounts Receivable, $75,000;Merchandise Inventory, $85,000; Equipment, $225,000;

Question:

The Office Warehouse had the following account balances: Cash, $25,000; Accounts Receivable, $75,000;Merchandise Inventory, $85,000; Equipment, $225,000; Accumulated Depreciation—Equipment, $45,000; Accounts Payable, $50,000; Salaries Payable, $15,000; and Notes Payable—Long-Term, $70,000. What is the current ratio, rounded to two decimal places?

a. 2.70 to 1
b. 2.85 to 1
c. 3.04 to 1
d. 1.37 to 1

Fantastic news! We've Found the answer you've been seeking!