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Blackboard Question 17 Use the following data to calculate the current ratio Koo

ID: 357188 • Letter: B

Question

Blackboard Question 17 Use the following data to calculate the current ratio Koonce Office Supplies Balance Sheet December 31, 2012 Cash Prepaid Insurance Accounts Receivable Invent Land held for Investment Land Buildings Less Accumulated Depreciation Trademarks Total Assets $130,000 60,000 100,000 140,000 150,000 180,000 .0001600000 $1 040 00 40.000) 160,000 Accounts Payable Salaries Payable Mortgage Payable Total 20,000 Common Stock Retained Earmings Total Stockholders Equity Total Liabilities and Stockholders Equity $240,000 181 1 1.44 1 3.07 1 269 1 t& Moving to the next question prevents changes to this ansorer

Explanation / Answer

Current Assets

Cash= $130,000

Prepaid insurance= $60,000

Accounts Receivable= 100,000

Inventory= 140,000

Current Assets= $430,000

Current Liabilities

Accounts Payabale= 140,000

Salary Payable = 20,000

Mortgage Payment = 160,000

Current Liability= 320,000

Current ratio= Current assets/current liability= 430,000/320,000= 1.44:1