Find Current ratio

Sales Revenue	$13,200			Add: Net Income	1,595		Cash	$85,700
Total Revenue		13,200		Subtotal	1,595		Store supplies	250
				Less: Dividends	1,500		Prepaid Insurance	5,500
Expenses:				Retained Earnings, July 31	95		Merchandise Inventory	18,400
Cost of Goods Sold	$6,600						Store fixtures	16,000
Store Rent Expense	$3,000						Less: Accum. Dep - Fixtures.	160
Telephone Expense	200						Total Assets	$125,690
Insurance Expense	500
Store Supplies Exp.	350						Liabilities and Stockholders' Equity
Depreciation Exp.	160						Liabilities:
Income Tax Expense	295						Accounts Payable	25,300
Electric Expense	500						Income Taxes Payable	295
Total Expenses	11,605						Total Liabilities	25,595
Net Income		$1,595					Stockholders' Equity:
							Common Stock	100,000
							Retained Earnings	95
							Total Stockholders' Equity	100,095
							Total Liabilities & Stockholders' Equity	$ 125,690

Answer rating: 100% (QA)

The Current Ratio is a liquidity ratio that measures a companys ability to pay sho... View the full answer