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The financial statements for Lexington Service Company include the following items: Account 2019 2018 Cash  $        49,500.00  $       45,000.00 Short-term Investments  $        28,000.00  $       15,000.00 Net Accounts Receivable  $        53,000.00  $       53,000.00 Merchandise Inventory  $      158,000.00  $       45,000.00 Total Assets  $      526,000.00  $     548,000.00 Accounts Payable  $      129,500.00  $     125,000.00 Salaries Payable  $        23,000.00  $       18,000.00 Long-term Notes Payable  $        54,000.00  $       52,000.00 Compute the current ratio for 2018. (round answer to two decimal places) A 3.83 B 1.1 C 0.91 D 6.23

The financial statements for Lexington Service Company include the following items: Account 2019 2018 Cash  $        49,500.00  $       45,000.00 Short-term Investments  $        28,000.00  $       15,000.00 Net Accounts Receivable  $        53,000.00  $       53,000.00 Merchandise Inventory  $      158,000.00  $       45,000.00 Total Assets  $      526,000.00  $     548,000.00 Accounts Payable  $      129,500.00  $     125,000.00 Salaries Payable  $        23,000.00  $       18,000.00 Long-term Notes Payable  $        54,000.00  $       52,000.00 Compute the current ratio for 2018. (round answer to two decimal places) A 3.83 B 1.1 C 0.91 D 6.23

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)
22nd Edition
ISBN:9781305666160
Author:James A. Heintz, Robert W. Parry
Publisher:James A. Heintz, Robert W. Parry
Chapter15: Financial Statements And Year-end Accounting For A Merchandising Business
Section: Chapter Questions
Problem 4CE
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The financial statements for Lexington Service Company include the following items:

Account 2019 2018
Cash  $        49,500.00  $       45,000.00
Short-term Investments  $        28,000.00  $       15,000.00
Net Accounts Receivable  $        53,000.00  $       53,000.00
Merchandise Inventory  $      158,000.00  $       45,000.00
Total Assets  $      526,000.00  $     548,000.00
Accounts Payable  $      129,500.00  $     125,000.00
Salaries Payable  $        23,000.00  $       18,000.00
Long-term Notes Payable  $        54,000.00  $       52,000.00

Compute the current ratio for 2018. (round answer to two decimal places)

A 3.83
B 1.1
C 0.91
D 6.23
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