The financial statements of weston office supply include the following items: 20172016cash $43,500 $50,000shortminus−term investments 27,00017,000net accounts receivable 102,00097,000merchandise inventory125,000119,000total assets527,000554,000total current liabilities251,000242,000long-term note payable59,00051,000what is 2017 current ratio? (round your answer to two decimal places.

The current ratio is 1.18 times

Explanation:

Current Ratio: The current ratio is that ratio which shows a relationship between the current assets and the current liabilities

The computation of the current ratio is shown below

Current ratio = Total Current assets ÷ total current liabilities

where,

Total current assets = Cash + short-term investments + net accounts receivable + merchandise inventory

=  $43,500 + $27,000 + $102,000 + $125,000

= $297,500

And, the total current liabilities is $251,000

Now put these values to the above formula  

So, the ratio would equal to

= $297,500 ÷ $251,000

= 1.18 times

The long term note payable is not a current liabilities,hence it is not considered in the computation part.

answer; the correct answer to the above statement is (true);