Pioneers adjusted trial balance as of December 31 2018 is gi

Pioneer\'s adjusted trial balance as of December 31, 2018 is given below:

Debit

Credit

Cash

$13,000

Accounts Receivable

8,000

Prepaid Rent

7,000

Prepaid Insurance

2,100

Office Supplies

3,300

Land

45,000

Building

57,000

Depreciationlong dash—Building

$12,000

Equipment

32,000

Depreciationlong dash—Equipment

7,500

Accounts Payable

5,500

Salaries Payable

4,500

Interest Payable

2,000

Mortgage Payable (long term)

5,000

Common Stock

14,000

Dividends

5,500

Service Revenue

229,500

Salaries Expense

46,500

Insurance Expense

3,000

Rent Expense

12,500

Utilities Expense

15,500

Advertising Expense

9,700

Expenselong dash—Building

10,900

Expenselong dash—Equipment

7,900

Supplies Expense

1,100

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Total

$280,000

$280,000

Compute the current ratio. (Round your answer to two decimal places.)

A.

8.16

B.

2.78

C.

2.36

D.

1.75

	Debit	Credit
Cash	$13,000
Accounts Receivable	8,000
Prepaid Rent	7,000
Prepaid Insurance	2,100
Office Supplies	3,300
Land	45,000
Building	57,000
Accumulated Depreciationlong dash—Building		$12,000
Equipment	32,000
Accumulated Depreciationlong dash—Equipment		7,500
Accounts Payable		5,500
Salaries Payable		4,500
Interest Payable		2,000
Mortgage Payable (long term)		5,000
Common Stock		14,000
Dividends	5,500
Service Revenue		229,500
Salaries Expense	46,500
Insurance Expense	3,000
Rent Expense	12,500
Utilities Expense	15,500
Advertising Expense	9,700
Depreciation Expenselong dash—Building	10,900
Depreciation Expenselong dash—Equipment	7,900
Supplies Expense	1,100	?????????????????
Total	$280,000	$280,000

Solution

Current ratio = Current assets/Current liabilities

Current assets = 13000+8000+7000+2100+3300 = 33400

Current liabilities = 5500+4500+2000 = 12000

Current ratio = 33400/12000 = 2.78

So answer is b) 2.78