Using the Following Balance Sheet and Income Statement Data, What

Multiple Choice

Using the following balance sheet and income statement data, what is the current ratio? $\begin{array}{lrlr}\text { Current assets } & \$ 7,000 & \text { Net income } & \$ 15,000 \\\text { Current liabilities } & 4,000 & \text { Stockholders' equity } & 21,000 \\\text { Average assets } & 44,000 & \text { Total liabilities } & 9,000\\\text { Total assets } \quad 30,000\end{array}$ Average common shares outstanding was 10,000.

A) 0.78 : 1
B) 3.33 : 1
C) 0.57 : 1
D) 1.75: 1