Question

Company XYZ has the following account balances: Cash $100,000 Accounts Receivable $200,000 Inventory $200,000 Plant, Property,...

Company XYZ has the following account balances:

Cash $100,000

Accounts Receivable $200,000

Inventory $200,000

Plant, Property, and Equipment $650,000

Accumulated Depreciation           $150,000

Accounts Payable $150,000

Wages Payable $100,000

Long-Term Debt   $400,000

Retained Earnings   $350,000

Calculate Company XYZ's Current Ratio.

1

1.2

2

1.53
Business   Accounting   
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Answer #1
Answer
Current Assets
Cash $      100,000
Accounts Receivable $      200,000
Inventory $      200,000
Total Current Assets $      500,000
Current Liabilities
Accounts Payable $      150,000
Wages Payable $      100,000
Total Current Liabilities $      250,000
Current Ratio
Current Assets / Current Liabilities 500000/250000 2
Option C is Correct
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