B is corrent. The requirement is to calculate the current ratio. The current ratio is calculated as current assets/current liabilities. Current assets include cash, accounts receivable, and inventory. B is corrent because the current ratio is 1.79 [($300,000 + $350,000 + $600,000)/$700,000].
A is incorrect. The current ratio is calculated as current assets/current liabilities. Current assets include cash, accounts receivable, and inventory. This answer is correct because the current ratio is 1.79 [($300,000 + $350,000 + $600,000)/$700,000].
C is incorrect. The current ratio is calculated as current assets/current liabilities. Current assets include cash, accounts receivable, and inventory. This answer is correct because the current ratio is 1.79 [($300,000 + $350,000 + $600,000)/$700,000].
D is incorrect. The current ratio is calculated as current assets/current liabilities. Current assets include cash, accounts receivable, and inventory. This answer is correct because the current ratio is 1.79 [($300,000 + $350,000 + $600,000)/$700,000].
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