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What is the current ratio for company

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Reference no: EM132961664

The following information pertains to The Vaughn Boutique Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets
Cash and short-term investments $ 40000
Accounts receivable (net) 24000
Inventory 21000
Property, plant and equipment 206000
Total Assets $291000

Liabilities and Stockholders' Equity
Current liabilities $ 50000
Long-term liabilities 95000
Stockholders' equity-common 146000
Total Liabilities and Stockholders' Equity $291000

Income Statement
Sales revenue $ 84600
Cost of goods sold 44800
Gross profit 39800
Operating expenses 21300
Net income $ 18500
Number of shares of common stock 5900
Market price of common stock $20
Dividends per share on common stock 0.9
Cash provided by operations $30500

Problem 1: What is the current ratio for this company?

Reference no: EM132961664

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