Question: What is the Current Ratio for this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264 Cost
What is the Current Ratio for this Company?
| INCOME STATEMENT | ||
| Particulars | Amount | |
| Income | 56,897,573 | |
| Revenue | 56,875,221 | |
| Interest Earned | 22,352 | |
| Expenses | ||
| Cost of Sales: | 32,775,264 | |
| Cost of Goods Sold | 32,733,149 | |
| Utilities Expense | 42,115 | |
| Gross Profit: | ||
| Operating Expenses: | 13,345,676 | |
| Salaries Expense | 3,255,449 | |
| Rent Expense | 956,224 | |
| Depreciation Expense: Equipment | 321,588 | |
| Depreciation Expense: Building | 459,887 | |
| Bad Debt Expense | 896,338 | |
| Insurance Expense | 1,100,365 | |
| Interest Expense | 1,555,300 | |
| Income Tax Expense | 4,800,525 | |
| Operating Profit: | 18,397,451 | |
| Profit: | 10,776,633 |
| BALANCE SHEET | ||
| Particulars | Amount | |
| Assets | ||
| Current Assets: | 21,322,431 | |
| Cash | 2,690,644 | |
| Accounts Receivable | 5,890,887 | |
| Inventory | 12,595,645 | |
| Prepaid Insurance | 145,255 | |
| Non Current Assets: | 29,715,924 | |
| Equipment | 15,799,800 | |
| Accumulated Depreciation: Equipment | -3,244,001 | |
| Building | 18,560,325 | |
| Accumulated Depreciation: Building | -5,655,225 | |
| Land | 4,255,025 | |
| Total Assets: | 51,038,355 | |
| Liabilities | ||
| Current Liabilities: | 11,194,411 | |
| Unearned Revenue | 668,236 | |
| Accounts Payable | 5,663,200 | |
| Salaries Payable | 145,250 | |
| Interest Payable | 67,500 | |
| Income Taxes Payable | 4,650,225 | |
| Non Current Liabilities: | 15,500,000 | |
| Long Term Loan @ 5% p.a. | 15,500,000 | |
| Total Liabilities: | 26,694,411 | |
| Equity | ||
| Common Stock | 280,000 | |
| Additional Paid In Capital | 5,320,000 | |
| Retained Earnings | 18,743,944 | |
| Total Equity: | 24,343,944 |
Question 1 options:
2.5 : 1 | |
1.9 : 1 | |
1 : 1 | |
1.5 : 1 |
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