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 $15,000 notes $25,000 inventory $41,000 wages $56,000 property $114,000 owners equity stock $50,000 investment $39,000 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 $15,000 notes $25,000 inventory $41,000 wages $56,000 property $114,000 owners equity stock $50,000 investment $39,000 current ratio = ? round to the nearest tenth.

Answer

Explanation:

Step1: Calculate current assets

Current assets = Cash + Inventory = $15000 + 41000=$56000$

Step2: Calculate current liabilities

Current liabilities = Notes + Wages = $25000+56000=$81000$

Step3: Calculate current ratio

Current ratio = $\frac{\text{Current Assets}}{\text{Current Liabilities}}=\frac{56000}{81000}\approx0.7$

Answer:

0.7