A partial balance sheet ($s in thousands) for Captain D\'s Seafood Inc. is shown

Question

A partial balance sheet ($s in thousands) for Captain D's Seafood Inc. is shown below. Assets: Liabilities: Cash $64 Accounts payable $242 Accounts receivable (net) 173 Other liabilities 82 Notes receivable 59 Total current liabilities 324 Inventories 203 Long-term liabilities 119 Prepaid expenses 32 Total liabilities 443 Total current assets 531 Shareholders' equity: Plant assets (net) 263 Capital stock 160 Retained earnings 191 Total stockholders’ equity 351 Total assets $794 Total liabilities and equity $794 The current ratio is (Round your answer to 2 decimal places):

1.64 times

1.20 times

.67 times

2.62 times

Explanation / Answer

Captain D's Seafood Balance sheet (partial) Assets Amt $ Equities & Liabilities Amt $ Cash                     64 Accounts Payable                    242 Accounts Receivable net                   173 Other Liab                      82 Notes Receivable                     59 Total Current Laib                    324 Inventory                   203 Long Term Liab                    119 Prepaid Expenses                     32 Total Laibilities                    443 Total Current Assets                   531 Shareholders'Equity Plant Assets Net                   263 Capital Stock                    160 Retained Earning                    191 Total Shareholders'Equity                    351 Total Assets                   794 Total Equities & Liabilities                    794 Current Ratio =Current Assets/ Current Liabilities=531/324=                 1.64 Times So The required Current Asset Ratio is =                 1.64 times

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