Use the Information in the Adjusted Trial Balance Presented Below

question 56

Multiple Choice

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

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