using the balance sheet provided, what is the decimal value for the current ratio? xyz company - balance…

using the balance sheet provided, what is the decimal value for the current ratio? xyz company - balance sheet assets liabilities cash $34,000 notes $31,000 inventory $23,000 wages $42,000 property $98,000 owners equity stock $45,000 investment $37,000 current ratio = ? round to the nearest tenth.

using the balance sheet provided, what is the decimal value for the current ratio? xyz company - balance sheet assets liabilities cash $34,000 notes $31,000 inventory $23,000 wages $42,000 property $98,000 owners equity stock $45,000 investment $37,000 current ratio = ? round to the nearest tenth.

Answer

Explanation:

Step1: Calculate current assets

Current assets = Cash + Inventory Current assets = $34000 + $23000 = $57000

Step2: Calculate current liabilities

Current liabilities = Notes + Wages Current liabilities = $31000 + $42000 = $73000

Step3: Calculate current ratio

Current ratio = $\frac{Current\ assets}{Current\ liabilities}$ Current ratio = $\frac{57000}{73000}\approx0.8$

Answer:

0.8