Chapter 1, Problem 2MCQ

What is Ella Company’s current ratio?

a.0.69

b.1.31

c.3.88

d.6.69

e.2.39

Use the following information for questions 2 through 5.

ELLA COMPANY Balance sheet December 31, 2017
Assets
Cash…………………	$ 86,000
Accounts receivable…………………..	76,000
Merchandise inventory……………………	1,22,000
Prepaid insurance………………………..	12,000
Long-term investments……………….	98,0000
Plant assets, net………………….	436,0000
Total assets………………………	$830,000
Liabilities and Equity
Current liabilities……………………..	$ 124,000
Long-term liabilities……………………	90,000
Common stock………………….	300,000
Retained earnings…………………	316,0000
Total liabilities and equity……………..	$830, 000