Given the Following Information,calculate the Current Ratio * Based on Ending Balance of Assets

question 19

Essay

Given the following information,calculate the current ratio:
$$\begin{array} { l r } \text { Curent Arsets } & \$ 85,000 \\\text { Long-Term Liabilities } & - 0 - \\\text { Net Income } & \$ 30,000 \\\text { Return on Assets* } & 12.5 \% \\\text { Debt-to-Equity Ratio } & 20.0 \%\end{array}$$ * Based on ending balance of assets

---

Definitions:

Overstates

The act of presenting values or figures in financial statements higher than they actually are, leading to a distorted view of a company's financial health.

Balance Sheet

A financial statement that displays a company's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial position.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net profit or loss.

Affect Inventories

Influences on the quantity, value, or type of products a business holds for sale, resulting from factors like demand fluctuations and supply chain issues.