Use the Following Data to Calculate the Current Ratio A)234 : 1
B)2

question 52

Multiple Choice

Use the following data to calculate the current ratio. Eddy Auto Supplies
Balance Sheet
December 31, 2017
$\begin{array}{lrlr}\text { Cash } & \$ 126,000 & \text { Accounts payable } & \$ 165,000 \\\text { Accounts receivable } & 120,000 & \text { Salaries and wages payable } & 30,000 \\\text { Inventory } & 210,000 & \text { Mortgage payable } & 270,000\\\text { Prepaid insurance } & 90,000 & \text { Total liabilities } &\$465,000\\\text { Stock investments } & 255,000 & \\\text { Land } & 285,000 &\\\text { Buildings }\quad\$339,000&&\text { Common stock } & \$ 360,000 \\\text { Less: Accumulated }&&\text { Retained earnings } & 750,000\\\text { depreciation }\quad(60,000) &279,000&\text { Total stockholders' equity }&\$1,110,000\\\text { Trademarks }&210,000&\text { Total liabilities and }\\\text { Total assets }&\$1,050,000&\text { stockholders' equity }&\$1,575,000\end{array}$

• A)2.34 : 1
• B)2.80 : 1
• C)3.31 : 1
• D)1.26 : 1

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Definitions:

Preset Count

A predetermined value used in counting applications to trigger an event when a counter reaches this value.

Input

Data or signals received by a system, device, or computational process for processing or manipulation.

Closed

Often refers to a circuit or loop that is complete and allows electrical current to flow through it.