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 $34,000 inventory $61,000 wages $57,000 property $114,000 owners equity stock $23,000 investment $76,000 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 $34,000 inventory $61,000 wages $57,000 property $114,000 owners equity stock $23,000 investment $76,000 current ratio = ? round to the nearest tenth.

Answer

Explanation:

Step1: Identify current assets

Current assets are cash and inventory. So, current - assets = $15000 + 61000=$76000$.

Step2: Identify current liabilities

Current liabilities are notes and wages. So, current - liabilities = $34000+57000=$91000$.

Step3: Calculate current ratio

The formula for the current ratio is $\text{Current Ratio}=\frac{\text{Current Assets}}{\text{Current Liabilities}}$. Substitute the values: $\text{Current Ratio}=\frac{76000}{91000}\approx0.8$.

Answer:

0.8