The following information pertains to Marigold Corp. Assume that all balance she
ID: 2338822 • Letter: T
Question
The following information pertains to Marigold Corp. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit. Assets Cash and short-term investments Accounts receivable (net) Inventory Property, plant and equipment Total Assets $55000 37000 35000 235000 $362000 Liabilities and Stockholders' Equity Current liabilities Long-term liabilities Stockholders' equity-common Total Liabilities and Stockholders'Equity $78000 82000 202000 $$ 362000 Income Statement $79000 Sales revenue Cost of goods sold Gross proft Operating expenses Net income 29000 15000 $14000 6000 $18 Number of shares of common stock Market price of common stock Dividends per share on common stock Cash provided by operations 46000 What is the current ratio for this company? 0 1 o 1.63Explanation / Answer
Current Ratio = Total Current Assets / Total Current Liabilities
Total Current Assets = Cash & Short-term investments + Accounts Receivables + Inventory
= $55,000 + 37,000 + 35,000
= $127,000
Total Current Liabilities = $78,000 (Given)
Therefore, The Current Ratio = Total Current Assets / Total Current Liabilities
= $127,000 / 78,000
= 1.63
“The Current Ratio for the company = 1.63”
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