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Kenny Rogers Roasters recently reported $92,560 in Cash, $878,000 in Accounts Receivable, $1,716,000 in Inventory, $205,000...

Kenny Rogers Roasters recently reported $92,560 in Cash, $878,000 in Accounts Receivable, $1,716,000 in Inventory, $205,000 in Notes Payable, $116,960 in depreciation, and $981,400 in Current Liabilities. Calculate the Current Ratio for Kenny Rogers Roasters? (round to two decimals)

2.85

0.35

2.74

3.07

None of the above

Solutions

Expert Solution

Current Ratio = Total Current Assets/ Total current liabilities

Current Assets = Cash + Accounts receivable + Inventory = 878,000 + 1,716,000 + 205,000 = 2,799,000

Current liabilities = 981,400

Current ratio for Kenny Roasters = 2,799,000 / 981,400 = 2.85

jeff jeffy answered 2 years ago
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