Compute Darling Company's Current Ratio Using the Following Information

Essay

Compute Darling Company's current ratio using the following information:
$$\begin{array} { | l | l | l | l | } \hline \text { Accounts receivable } & \$ 20,000 & \text { Long-term notes payable } & \$ 80,000 \\\hline \text { Salaries payable } & 5,000 & \text { Building } & 170,000 \\\hline \text { Prepaid Rent } & 7,000 & \text { Accounts payable } & 15,000 \\\hline \text { Cash } & 12,000 & \text { Land } & 75,000 \\\hline\end{array}$$