using the balance sheet provided, what is the...
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
Current assets = $15000 + 41000=\$56000$
## Step2: Calculate current liabilities
Current liabilities = Notes + Wages
Current liabilities = $25000+56000 = \$81000$
## Step3: Calculate current - ratio
Current ratio = $\frac{\text{Current Assets}}{\text{Current Liabilities}}$
Current ratio = $\frac{56000}{81000}\approx0.7$
# Answer:
0.7