Question

For the FY 2018, Dorchester Company's balance sheet included the following current items: cash $33,000, accounts receivable $138,000, inventories $92,000, prepaid expenses $23,000, accounts payable $78,000, and accrued expenses $50,000. 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	$ 138,000
Inventories	$ 92,000
Prepaid Expenses	$ 23,000
Current Assets	$ 286,000
Particulars	Amount (in $ )
Accounts Payable	$ 78,000
Accrued Expenses	$ 50,000
Current Liabilities	$ 128,000
Current ratio            = Current assets / Current liabilities             = $ 286,000 / $ 128,000	2.2