Homework SoursePlease help filling in this table Accounts receivable Accoun
Please help filling in this table
Accounts receivable Accounts payable Buildings Cash $24,500 Long-term notes payable $29,500 3,600 5,000 3,900 16,500 Office supplies 48,000 Prepaid insurance 8,000 Unearned services revenue Compute Chavez Company\'s current ratio using the above information. Current Ratio Choose Numerator:Choose Denominator:Current Ratio Current assets Current liabilities Current ratioSolution
Current ratio :
Current assets = 8000+24500+3600+5000 = 41100
Current liabilities = 16500+3900 = 20400
| Current ratio | ||||
| Choose numerator | / | Choose denominator | = | Current ratio |
| Current assets | / | Current liabilities | = | Current ratio |
| 41100 | / | 20400 | = | 2.01:1 |
