The following information has been extracted from the financial statements of ChopChop Pty. Ltd., a knife wholesaler. Accounts2021in thousandsCash at bank $160Interest Expense$60Accounts Receivable$457Inventory$661Bank Loan (5 years)$580Accounts Payable$326Property, Plant and Equipment$1,300Sales$675COGS$255Wages Expense$67 Required:Calculate current ratio for the year 2021. Leave two (2) decimal places.

Current ratio is one of the liquidity ratio of the business which shows ratio between current assets…

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FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The following information has been extracted from the financial statements of ChopChop Pty. Ltd., a knife wholesaler.

Accounts	2021 in thousands
Cash at bank	$160
Interest Expense	$60
Accounts Receivable	$457
Inventory	$661
Bank Loan (5 years)	$580
Accounts Payable	$326
Property, Plant and Equipment	$1,300
Sales	$675
COGS	$255
Wages Expense	$67

Required:

Calculate current ratio for the year 2021. Leave two (2) decimal places.

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