QUESTION 13 Use the following selected financial data to cal

QUESTION 13 Use the following selected financial data to calculate the current ratio for CF Company. You may use Appendix A of the textbook to locate the formulas, pgs. 269-271 Net sales$940,000 Current assets 580,000 Current liabilities 240,000 Net income 90,000 Total assets 740,000 Total liabilities 270,000 O 2.7 O 2.1 O 2.4 O 1.6

Solution

Current Ratio = 2.4

Current Ratio = Current Assets / Current Liabilities

= $580,000 / 240,000

= 2.41

= 2.4 [Rounded to one decimal point]