Question

For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $33,000, accounts receivable $110,000, inventories $84,000, prepaid expenses $15,000, accounts payable $61,000, and accrued expenses $59,000.  Use this information to determine the Current Ratio. (Round & enter your answers to one decimal place.)

Answer 1

Answer:
Particulars	Amount (in $ )
Cash	$ 33,000
Accounts receivable	$ 110,000
Inventories	$ 84,000
Prepaid Expenses	$ 15,000
Current Assets	$ 242,000
Particulars	Amount (in $ )
Accounts Payable	$ 61,000
Accrued Expenses	$ 59,000
Current Liabilities	$ 120,000
Current ratio                     = Current assets / Current liabilities                     =   $ 242,000 / $ 120,000	2