The financial statements of Weston Office Supply include the following items:20172016Cash $43,500 $50,000Shortminus-term Investments 27,000 17,000Net Accounts Receivable 102,000 97,000Merchandise Inventory 125,000 119,000Total Assets 527,000 554,000Total Current Liabilities 251,000 242,000 Long-term Note Payable 59,000 51,000What 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.