1. Using the Balance Sheet, calculate the current ratio. Comment on whether or not the ratio shows financial strength.

South Shore Medical Clinic
Balance Sheet
December 31, 20X4
ASSETS			LIABILITIES & NET WORTH
Current Assets			Current Liabilities
Cash	$30,000		Accounts Payable	$32,200
Accounts Receivable	$60,000		Current Portion - Long Term Debt	$65,000
Supplies	$10,000		Total Current Liabilities	$97,200
Inventory	$45,000
Total Current Assets	$145,000		Non-current Liabilities
			Long Term Debt, net of Current Portion	$210,000
Non-current Assets			Total Non-Current Liabilities	$210,000
Equipment	$193,000
Building	$200,000		NET WORTH
Total Non-current Assets	$393,000		Owner's Equity	$230,800
TOTAL ASSETS	$538,000		TOTAL LIABILITIES & NET WORTH	$538,000
Current Ratio: