Compute Chase Company's Current Ratio Using the Following Information

Essay

Compute Chase Company's current ratio using the following information:
$$\begin{array} { | l | l | l | l | } \hline \text { Cash } & \$ 20,000 & \text { Accounts Payable } & \$ 8,000 \\\hline \text { Accounts Receivable } & 5,000 & \text { Salaries Payable } & 12,000 \\\hline \text { Prepaid Rent } & 7,000 & \text { Note Payable (due in 2 years) } & 150,000 \\\hline \text { Equipment } & 12,000 & & \\\hline\end{array}$$