Final answer:
The current ratio of Compros is calculated by dividing its current assets ($450,000) by its current liabilities ($300,000), resulting in a ratio of 1.5. This indicates good short-term financial stability.
Step-by-step explanation:
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. To calculate the current ratio, we divide current assets by current liabilities. Given the selected data from Compros' balance sheet, we have current assets totaling $450,000 (cash of $75,000 + accounts receivable of $135,000 + inventory of $240,000) and current liabilities of $300,000.
Current Ratio = Current Assets / Current Liabilities = ($75,000 + $135,000 + $240,000) / $300,000
= $450,000 / $300,000 = 1.5
This means that for every dollar of current liabilities, Compros has $1.50 in current assets, which can be used to pay off its liabilities in the near term. A current ratio of 1.5 indicates that the company has adequate liquidity and is generally considered healthy in terms of short-term financial stability.