The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal): Item/Account 2018 2017 Cash 39,000 $24,000 Accounts Receivable

Accounting Oct 06, 2020

The following financial information is for Chesapeake Corporation are for the fiscal years ending 2018 & 2017 (all balances are normal):

Item/Account 2018 2017

Cash 39,000 $24,000

Accounts Receivable. 58,000 52,000

Inventory 56,000 48,000

Current Liabilities 62,000 42,000

Net Sales (all credit) 550,000 485,000

Cost of Goods Sold 288,000 265,000

Use this information to determine the number of current ratio as of December 31, 2018: (Round & enter your answers to one decimal place and enter the value.)

Expert Solution

Computation of Current Ratio as of December 31, 2018:

Current Ratio = Current Assets/Current Liabilties

Here,

Current Assets = Cash + Accounts Receivables + Inventory = $39,000+$58,000+$56,000 = $153,000

Current Liabilities = $62,000

Current Ratio = $153,000/$62,000 = 2.47

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