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:

Upper Mantle

The portion of the Earth's mantle that lies just beneath the crust, extending to a depth of about 660 kilometers.

Nitrogen Cycle

The series of processes by which nitrogen and its compounds are interconverted in the environment and in living organisms, including nitrogen fixation and decomposition.

Timber-Harvesting

The process of cutting down trees and transporting them to be processed into wood products or used as fuel.

Net Primary Productivity

The rate at which all the plants in an ecosystem produce net useful chemical energy.