Use the following data to calculate the current ratio. Kingbird, Inc. Balance Sheet December 31, 2022

Cash and cash equivalents $68000 Accounts payable $135500
Accounts receivable 103500 Salaries and wages payable 12300
Inventory 144500 Bonds payable 166000
Prepaid insurance 90000 Total liabilities $313800
Stock investments 181500
Land 195000
Buildings $225000 Common stock $239200
Less: Accumulated depreciation (64000) 161000 Retained earnings 502500
Trademarks 112000 Total stockholders' equity $741700
Total assets $1055500 Total liabilities and stockholders' equity $1055500

Kingbird, Inc.

Current Ratio = Current Assets/Current Liabilities

= $406,000/$147,800

= 2.75

Explanation:

a) Data and Calculations:

Kingbird, Inc. Balance Sheet December 31, 2022

Cash and cash equivalents $68000   Accounts payable          $135500

Accounts receivable             103500   Salaries & wages payable 12300

Inventory                               144500    Bonds payable                166000

Prepaid insurance                 90000    Total liabilities                $313800

Stock investments                181500

Land                                     195000

Buildings         $225000                       Common stock           $239200

Less: Accumulated

    depreciation (64000)    161000       Retained earnings        502500

Trademarks                        112000   Total stockholders' equity $741700

Total assets                  $1055500   Total liabilities and stockholders'

                                                                                     equity $1055500

Current Assets:

Cash and cash equivalents $68,000

Accounts receivable             103,500

Inventory                               144,500

Prepaid insurance                 90,000

Total current assets        $406,000

Current Liabilities:

Accounts payable           $135,500

Salaries & wages payable  12,300

Total current liabilities  $147,800  

answer assertive;