Final answer:
The total amount of current liabilities for the company, calculated using the current ratio and current assets, is $649,710.
option (A)
Step-by-step explanation:
The classified balance sheet for a company indicates a current ratio of 2.6, with current assets reported as $1,689,246. The current ratio is calculated by dividing current assets by current liabilities. Therefore, to find the total amount of current liabilities, we can use the formula:
Current Ratio = Current Assets / Current Liabilities
By rearranging the formula to find Current Liabilities, we get:
Current Liabilities = Current Assets / Current Ratio
Substituting the given values:
Current Liabilities = $1,689,246 / 2.6
Current Liabilities = $649,710
This indicates that the total amount of current liabilities for the company is $649,710, which corresponds to option (a).