Question

Transic Corporation has the following financial data for 2016 and 2017. 2017 2016 ASSETS Current Assets: Cash $ 48,000 $ 14,000 Marketable Securities 9,000 13,000 Accounts Receivable 35,000 24,000 Other Current Assets 15,000 18,000 Total Current Assets 107,000 69,000 Fixed Assets (net) 140,000 130,000 Total Assets $247,000 $199,000 LIABILITIES Current Liabilities $ 72,000 $ 52,000 Long-term Liabilities 50,000 37,000 Total Liabilities $122,000 $ 89,000 Total Stockholders' Equity $125,000 $110,000 Total Liabilities And Stockholders' Equity $247,000 $199,000 What is Transic's current ratio for 2017

Answer 1

1.49

Step-by-step explanation:

Calculation to determine Transic's current ratio for 2017

Using this formula

2017 Current ratio=2017 Total Current Assets /2017 Current Liabilities

Let plug in the formula

2017 Current ratio=$107,000/$ 72,000

2017 Current ratio=1.486

2017 Current ratio=1.49 (Approximately)

Therefore Transic's current ratio for 2017 is 1.49