Night Train Incorporated has posted a partial balance sheet from their current financials. The company would like help in calculating their liquidity position.
| Balance Sheet | Current Financials |
|---|---|
| Accounts Receivable | $722,500.00 |
| Cash and Marketable Securities | $201,200.00 |
| Inventory | $450,950.00 |
| Notes Payable | $521,100.00 |
| Accounts Payable | $341,650.00 |
Find the current ratio for the firm.
round to 2 decimals
| Current Ratio | = | Current Assets / Current Liabilities | ||||
| = | $ 13,74,650.00 | / | $ 8,62,750.00 | |||
| = | 1.59 | |||||
| Working: | ||||||
| a. Calculation of current assets | ||||||
| Accounts Receivable | $ 7,22,500.00 | |||||
| Cash and Marketable securities | $ 2,01,200.00 | |||||
| Inventory | $ 4,50,950.00 | |||||
| Current Assets | $ 13,74,650.00 | |||||
| b. Calculation of current liabilities | ||||||
| Notes Payable | $ 5,21,100.00 | |||||
| Accounts Payable | $ 3,41,650.00 | |||||
| Current Liabilities | $ 8,62,750.00 | |||||
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