Reference no: EM132602159

Question - Allen Company had the following accounts and balances on December 31, 2019:

Estimated Liabilities $51,250

Discount on Notes Payable $150

Cash $20,000

Notes Receivable, maturity 2/1/22 $5,000

Notes Payable, due June 2, 2020 $1,000

Current Maturities of Long-Term Debt $6,900

Accounts Receivable $267,500

Unearned Revenue $4,320

Equipment $950,000

Interest Payable $1,010

Accounts Payable $104,400

Wages Payable $6,000

Inventory $85,000

Marketable Equity Securities $40,000

Land $600,000

Common Stock $900,000

Allowance for Doubtful Accounts $12,000

What is Allen Company's current ratio?

A. 2.36

B. 2.39

C. 2.29

D. 3.44

E. 3.54