What is the current ratio for this company


The following information pertains to Soho Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets

Cash and short-term investments $ 40,000

Accounts receivable (net) $25,000

Inventory $20,000

Property, plant and equipment $210,000

Total Assets $295,000

 

Liabilities and Stockholders' Equity

Current liabilities $ 60,000

Long-term liabilities $85,000

Stockholders' equity-common $150,000

Total Liabilities and Stockholders' Equity $295,000

 

Income Statement

Sales $ 85,000

Cost of goods sold $45,000

Gross margin $40,000

Operating expenses $20,000

Net income $ 20,000

 

Number of shares of common stock 6,000

Market price of common stock $20

Dividends per share .90

Cash provided by operations $30,000

 


What is the current ratio for this company?

 

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Accounting Basics: What is the current ratio for this company
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