M212 Computing and Interpreting the Current Ratio LO25 Refer

M2-12 Computing and Interpreting the Current Ratio LO2-5 Refer to the following data of Sal\'s Taco Company: Current Assets $280,000 $270,000 Current Liabilities $155,000 $250,000 End of 201:3 End of 2014 Calculate the current ratio for Sal\'s Taco Company at the end of 2013 and 2014. Current Ratio Numerator 2013 Denominator 2014 Numerator Denominator

Solution

M2-12) Current Ratio 2013 Numerator Current Assets 280000 =1.81 Denominator Current Liabilities 155000 2014 Numerator Current Assets 270000 =1.08 Denominator Current Liabilities 250000