Note: The common shares are trading in the stock market for $27 each. Refer to the financial statements of Burnaby Mountain Trading Company. The firm's current ratio for 2017 is .

Please refer to the explanation section

Explanation:

Te Question is incomplete. The financial statements of Burnaby Mountain Trading Company are missing. We will however attempt to answer this question using assumed figures to illustrate how Current ratio is calculated and interpreted.

Current ratio measures a company liquidity. Current Measures a company's ability to pay its short term liabilities or current liabilities. Current ratio is calculated as a ratio of current assets over current liabilities. We divide current assets by current Liabilities.

Current asset are assets maturing within a year, includes assets such as Inventory, Bank , Accounts Receivables etc. Current Liabilities are  obligations or liabilities that are due within 12 months, Includes Liabilities like Trade Payable

Assumed figures

Current Assets

Inventory = $10 000

Accounts Receivables = $6000

Cash on Hand(Bank) = $2000

Current Liabilities

Creditors (Trade Payable) = $9000

Current Assets = $10 000 + $6000 + $2000 = $18000

Current Liabilities = $9000

Current Ratio = Current assets : Current Liabilities

Current Ratio = $18000/$9000 : $9000/$9000

Current Ratio = 2 : 1

Current ratio of 2:1 is a good indication of the company's (Burnaby Mountain Trading Company) ability to pay its short term liabilities. Current assets of Burnaby Mountain Trading company are more than enough to cover short term liabilities, for each dollar of owed the company has 2 dollars to cover each dollar That Burnaby Mountain Trading Company owes

answerorganizational language;

answer(b) equal; set period;