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
ParticularsAmount
Income56,897,573
Revenue56,875,221
Interest Earned22,352
Expenses
Cost of Sales:32,775,264
Cost of Goods Sold32,733,149
Utilities Expense42,115
Gross Profit:
Operating Expenses:13,345,676
Salaries Expense3,255,449
Rent Expense956,224
Depreciation Expense: Equipment321,588
Depreciation Expense: Building459,887
Bad Debt Expense896,338
Insurance Expense1,100,365
Interest Expense1,555,300
Income Tax Expense4,800,525
Operating Profit:18,397,451
Profit:10,776,633
BALANCE SHEET
ParticularsAmount
Assets
Current Assets:21,322,431
Cash2,690,644
Accounts Receivable5,890,887
Inventory12,595,645
Prepaid Insurance145,255
Non Current Assets:29,715,924
Equipment15,799,800
Accumulated Depreciation: Equipment-3,244,001
Building18,560,325
Accumulated Depreciation: Building-5,655,225
Land4,255,025
Total Assets:51,038,355
Liabilities
Current Liabilities:11,194,411
Unearned Revenue668,236
Accounts Payable5,663,200
Salaries Payable145,250
Interest Payable67,500
Income Taxes Payable4,650,225
Non Current Liabilities:15,500,000
Long Term Loan @ 5% p.a.15,500,000
Total Liabilities:26,694,411
Equity
Common Stock280,000
Additional Paid In Capital5,320,000
Retained Earnings18,743,944
Total Equity:24,343,944

Question 1 options:

2.5 : 1

1.9 : 1

1 : 1

1.5 : 1

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