Brief Exercise 221 Corsig Corporation had the following comparative current assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016 Current assets Cash $25,000 $30,000 Debt investments 40,000 10,000 Accounts receivable 60,000 90,000 Inventory 110,000 90,000 Prepaid expenses 35,000 25,000 Total current assets $270,000 $245,000 Current liabilities Accounts payable $120,000 $110,000 Salaries and wages payable 40,000 30,000 Income tax payable 10,000 15,000 Total current liabilities $170,000 $155,000 During 2017, net credit sales and cost of goods sold were $570,000 and $350,000, respectively. Net cash provided by operating activities for 2017 was $140,000. Compute current ratio for 2017. (Round answer to 2 decimal places, e.g. 2.25.) Current ratio : 1
Brief Exercise 221 Corsig Corporation had the following comparative current assets and current liabilities: Dec. 31, 2017 Dec. 31, 2016 Current assets Cash $25,000 $30,000 Debt investments 40,000 10,000 Accounts receivable 60,000 90,000 Inventory 110,000 90,000 Prepaid expenses 35,000 25,000 Total current assets $270,000 $245,000 Current liabilities Accounts payable $120,000 $110,000 Salaries and wages payable 40,000 30,000 Income tax payable 10,000 15,000 Total current liabilities $170,000 $155,000 During 2017, net credit sales and cost of goods sold were $570,000 and $350,000, respectively. Net cash provided by operating activities for 2017 was $140,000. Compute current ratio for 2017. (Round answer to 2 decimal places, e.g. 2.25.) Current ratio : 1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Brief Exercise 221
Corsig Corporation had the following comparative current assets and current liabilities:
Dec. 31, 2017
Dec. 31, 2016
Current assets
Cash
$25,000
$30,000
Debt investments
40,000
10,000
Accounts receivable
60,000
90,000
Inventory
110,000
90,000
Prepaid expenses
35,000
25,000
Total current assets
$270,000
$245,000
Current liabilities
Accounts payable
$120,000
$110,000
Salaries and wages payable
40,000
30,000
Income tax payable
10,000
15,000
Total current liabilities
$170,000
$155,000
During 2017, net credit sales and cost of goods sold were $570,000 and $350,000, respectively. Net cash provided by operating activities for 2017 was $140,000.
Compute current ratio for 2017. (Round answer to 2 decimal places, e.g. 2.25.)
Current ratio
: 1
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