Using the financial statements below, calculate the ratio listed.

Required:

Compute the Current ratio for the year of 2015 and 2014.

Transcribed Image Text:

Cash Accounts receivable Inventory Prepaid insurance Equipment (net) Total Assets Accounts payable Interest payable Income taxes payable Bonds payable Common Stock Retained earnings Total Liab. & S. Equity 2015 $ 33,000 180,000 340,000 4,000 290,000 $ 847,000 170,200 2,800 9,440 280,000 100,000 284,560 $ 847,000 2014 $ 25,000 140,000 310,000 5,000 300,000 $ 780,000 220,000 2,800 8,000 280,000 100,000 169,200 $ 780,000 Cash Accounts receivable Inventory Prepaid insurance Equipment (net) Total Assets Accounts payable Interest payable Income taxes payable Bonds payable Common Stock Retained earnings Total Liab. & S. Equity 2015 $ 33,000 180,000 340,000 4,000 290,000 $ 847,000 170,200 2,800 9,440 280,000 100,000 284,560 $ 847,000 2014 $ 25,000 140,000 310,000 5,000 300,000 $ 780,000 220,000 2,800 8,000 280,000 100,000 169,200 $ 780,000

Answer rating: 100% (QA)

Current ratio Current assets current liabilit... View the full answer