Smith Company Has the Following Account Balances Calculate Smith Company's Current Ratio

question 15

Multiple Choice

Smith Company has the following account balances:
$$\begin{array} { | l | r | } \hline \text { Cash } & \$ 100,000 \\\hline \text { Accounts Receivable } & 50,000 \\\hline \text { Merchandise Inventory } & 250,000 \\\hline \text { Equipment } & 400,000 \\\hline \text { Accounts Payable } & 50,000 \\\hline \text { Bonds Payable due in 10 years } & 300,000 \\\hline\end{array}$$
Calculate Smith Company's current ratio.

• A)8)0
• B)7)6
• C)2)0
• D)16.0

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