During 2018, Towson Company had credit sales of $58,000 and cash sales of $10,000. In 2018 Towson

collected $31,000 of accounts receivable resulting from sales on credit. Towson incurred operating expenses of $63,000; of this amount, $42,900 was paid in 2018, and the remaining balance represented a liability at year-end. In addition to these operating expenses, Towson also purchased for cash a three-year insurance policy on January 1, 2018. The cost of this policy was $3,000. What is Towson’s 2018 accrual basis net income or loss? Enter a loss as a negative number.

A partial list shows that Charles Corporation’s adjusted trial balance included the following items (all account balances are normal):

Accounts payable $45,500, Accounts receivable $57,000, Capital stock $100,000, Cash $41,000, Dividends $10,000, Goodwill $47,000, Interest expense $4,000, Interest payable $4,400, Inventory $32,000, Note payable $21,000, Prepaid expenses $3,600, Property, plant & equipment $123,000, Retained earnings $46,000, Rent expense $18,000, Revenues $101,000, and Salary expense $60,000. The note payable balance is due in nine months. How much is Charlie’s current ratio? (Round your answer to two decimal places.)

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