Use the Information in the Adjusted Trial Balance Presented Below

question 52

Multiple Choice

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

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

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