Purple Company Has the Following Data Available Current Liabilities What Is the Current Ratio for Purple Company in 2X13

question 79

Multiple Choice

Purple Company has the following data available: $\begin{array} { l l l l } \text { Current Assets: } & 2X13 & 2 X12 & 2 X11 \\\quad \text { Cash } & \$ 25 & \$ 20 & \$ 15 \\\quad \text { Accounts Receivable } & 90 & 70 & 60 \\\text { Inventcry } & 65 & 50 & 40 \\\quad \text { Prepaid Rent } & \underline { 10 } & \underline { 15 } & \underline { 5 } \\\text { Total Current Assets } & \underline { \$ 190 } & \underline { \$ 155 } & \underline { \$ 120 } \\\text { Total Long-term Assets } & \$ 60 & \$ 60 & \$ 55\end{array}$
Current Liabilities:
$\begin{array} { c l l l } \text { Accounts Payable } & \$ 50 & \$ 30 & \$ 20 \\\text { Wages Payable } & 20 & 10 & 5 \\\text { Taxes Payable } & 10 & 5 & 15 \\\text { Current Long-Term Debt } & \underline { 10 } & \underline { 15 } & 5 \\\text { Total Curent Liabilities } & \underline { \$ 90 } & \underline { \$ 60 } & \$ 45 \\\text { Total Long-term Liabilities } & \$ 35 & \$ 45 & \$ 50\end{array}$
What is the current ratio for Purple Company in 2X13? Has the current ratio improved or not improved since 2X12?

• A)2.11,improved
• B)0.76,improved
• C)0.76,not improved
• D)0.36,improved
• E)2.11,not improved

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