Use the Following Data to Calculate the Current Ratio A)207 : 1
B)1

question 90

Multiple Choice

Use the following data to calculate the current ratio. $\begin{array} { l } \text {Carne Auto Supplies }\\ \text { Balance Sheet }\\ \text { December 31,2022 }\\\begin{array}{lr}\text { Cash } & \$ 0,000 \\\text { Accounts receivable } & 100,000 \\\text { Inventory } & 140,000 \\\text { Prepaid insurance } & 80,000 \\\text { Stock investments } & 180,000 \\\text { Land } & 190,000\\\text { Buildings } & \$ 230,000 & \\\text { Less: Accumulated } & \\\quad \text { depreciation } (60,000) & 170,000 \\\text { Patent } & 140,000 \\\text { Total assets } & \$ 1,070,000\\\end{array}&\begin{array}{lrr}\text { Accounts payable } & \$ 130,000 \\\text { Salaries and wages payable } & 20,000 \\\text { Mortgage payable } & 180,000 \\\text { Total liabilities } & 330,000\\\\\\\text { Common stock } & 240,000 \\\text { Retained earnings } & 500,000 \\\text { Total stockholders' equity } & 740,000 \\\text { Total liabilities and } & \\\text { stockholders' equity } & \$ 1,070,000\\\end{array}\\\end{array}$

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Definitions:

Clusters

Groups or collections of similar items, events, or characteristics closely positioned or occurring together.

Behavior

The actions or reactions of an individual or group in response to external or internal stimuli.

Conflict Avoidance

A strategy or approach where individuals preemptively avoid situations or discussions that are likely to lead to disagreements or disputes.

Marriages

A socially, culturally, and legally recognized union between individuals that establishes rights and obligations between them and their children, and between them and their in-laws.