Use the Following Data to Calculate the Current Ratio A)137: 1
B)2

question 42

Multiple Choice

Use the following data to calculate the current ratio. $\begin{array} {c } \text { Drew's Lawn Service}\\ \text { Balance Sheet }\\ \text { December 31,2022 }\\\begin{array}{lr}\text { Cash } & \$ 2,000 \\\text { Accounts receivable } & 300 \\\text { Supplies } & 100 \\\text { Prepaid insurance } & 900\\ \text {Equipment }&\$33,000\\ \text { Less: Accumulated }\\ \text {depreciation }(6,000) &27,000\\ \text { Internet domain}&1,000\\ \text {Total assets }&\$31,300\\\end{array}&\begin{array}{lr}\text { Accounts payable } & \$ 600 \\\text { Salaries and wages payable } & 200 \\\text { Note payable (due 2024) } & 22,100 \\\text { Total liabilities } & 22,900 \\\text { Common stock } & 7,000 \\\text { Retained earnings } & 1,400 \\\text { Total stockholders' equity } & \underline{8,400}\\ \text {Total liabilities and }\\ \text { stockholders' equity}&\$31,300\\\end{array}\end{array}$

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Definitions:

Letter From Birmingham Jail

An open letter written by Martin Luther King Jr. in 1963, advocating for civil rights and expressing the importance of nonviolent protest.

Jim Crow

Refers to a set of laws and practices in the southern United States that enforced racial segregation and discrimination against African Americans after the Civil War.

Segregationists

Individuals or groups who support the practice of separating people based on racial, ethnic, or other differences, often upheld through laws or social norms.

Local Clergyman

A religious leader serving a specific community or parish, often involved in spiritual guidance, community support, and religious ceremonies.