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Use the following data to calculate the current ratio.
Skysong, Inc. Balance Sheet December 31, 2017
Cash $65500 Accounts payable $131500
Accounts receivable 93000 Salaries and wages payable 17500
Inventory 148000 Mortgage payable 173000
Prepaid insurance 87500 Total liabilities $322000
Stock Investments 194500 Land 185500
Buildings $219500 Common stock $216500
Less: Accumulated depreciation (72500) 147000 Retained earnings 483500
Trademarks 101000 Total stockholders' equity $700000
Total assets $1022000 Total liabilities and stockholders' equity $1022000
a. 2 : 1
b. 2.64 : 1
c. 2 : 1
d. 3 : 1
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Use the following data to calculate the current ratio.
Skysong, Inc. Balance Sheet December 31, 201...
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