Use the Information in the Adjusted Trial Balance Presented Below

question 134

Multiple Choice

Use the information in the adjusted trial balance presented below to calculate the current ratio for Taron Company: $\begin{array}{|l|r|l|}\hline \text { Account Title } & \text { Dr. } & \text { Cr. } \\\hline \text { Cash } & \$ 23,000 & \\\hline \text { Accounts receivable } & 16,000 & \\\hline \text { Prepaid insurance } & 6,600 & \\\hline \text { Equipment } & 100,000 & \\\hline \text { Accumulated Depreciation-Equipment } & & \$ 50,000 \\\hline \text { Land } & 95,000 &\\\hline \text { Accounts payable } & & 17,000 \\\hline \text { Interest payable } & & 2,400 \\\hline \text { Unearned revenue } & & 5,000 \\\hline \text { Long-term notes payable } & & 30,000 \\\hline \text { Z. Taron, Capital } & & 136,200 \\\hline \text { Totals } & \$ 240,600 & \$ 240,600 \\\hline\end{array}$

• A).54.
• B)1.77.
• C)1.87.
• D)3.92.
• E)1.60.

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Definitions:

Collection Delay

The period between when a company bills its customer and when it actually receives payment, impacting cash flow.