Swan Song's Adjusted Trial Balance as of 31 December 2017

Multiple Choice

Swan Song's adjusted trial balance as of 31 December 2017 is given below: $\begin{array}{|l|l|l|}\hline \text { Accounts } & {\text { Debit }}&\text { Credit } \\\hline \text { Cash } & \$ 13,000 \\\hline \text { Accounts receivable } & 11,000 \\\hline \text { Prepaid rent } & 9000 \\\hline \text { Prepaid insurance } & 2000 \\\hline \text { Office supplies } & 3000 \\\hline \text { Building } & 56,000 \\\hline \text { Accumumlated depreciation - building } & & \$ 11,000 \\\hline \text { Equipment } & 38,000 & \\\hline \text { Accumumlated depreciation - equipment } & & 7000 \\\hline \text { Land } & 10,000 & \\\hline \text { Accounts payable } && 5500 \\\hline \text { Salaries payable } && 4300 \\\hline \text { Interest payable } && 2700 \\\hline \text { Loan payable, non-current } && 5000 \\\hline \text { R. Lee, capital (deficit) } && 11,000 \\\hline \text { R. Lee, drawings } & 6900 & \\\hline \text { Service revenue } & & 239,500 \\\hline \text { Salaries expense } & 43,500 & \\\hline \text { Insurance expense } & 5000 \\\hline \text { Rent expense } & 12,000 \\\hline \text { Electricity and gas expense } & 18,000 \\\hline \text { Advertisting expense } & 9000 \\\hline \text { Depreciation expense - building } & 10,000 \\\hline \text { Depreciation expense - equipment } & 7900 \\\hline \text { Office supplies expense } & 1700 \\\hline \text { Total }&\$ 286,000 &\$ 286,000 \\\hline\end{array}$ Calculate the current ratio.

A) 8.17
B) 1.73
C) 2.36
D) 1.92