Assume that the Current Assets for Shine Co. as of Decebmer 31, 2011, are listed below. Assume further that the total Current Liabilites on the same date are $150,000. What is the current ratio for Shine Co. on December 31, 2011? ASSETS Current assets: Cash $90,000 Temporary Investments 30,000 Accounts Receivable 78,000 Inventories 99,000 Prepaid Expenses 20,700 Total current assets $317,700 .3 1.0 1.3 2.1 Solution.

1. Assume that the Current Assets for Shine Co. as of Decebmer 31, 2011, are listed below.
Assume further that the total Current Liabilites on the same date are $150,000. What is the
current ratio for Shine Co. on December 31, 2011?
ASSETS
Current assets:
Cash $90,000
Temporary Investments 30,000
Accounts Receivable 78,000
Inventories 99,000
Prepaid Expenses 20,700
Total current assets $317,700
.3
1.0
1.3
2.1
Solution