The following contains information from the records of the Wellborn Engineers and Architects.
- Calculate the current ratio.
A)1.58
B)2.32
C)0.59
D)1.68

Question

The following contains information from the records of the Wellborn Engineers and Architects. 
- Calculate the current ratio.
A)1.58 
B)2.32 
C)0.59 
D)1.68

Quizplus · Accepted Answer

Current ratio = Current assets / Current liabilities

From the given information, we can calculate:

Current assets = $120,000 + $80,000 = $200,000

Current liabilities = $90,000 + $30,000 = $120,000

Current ratio = $200,000 / $120,000 = 1.67

Since the closest option is 1.68, the best choice is D.

The Following Contains Information from the Records of the Wellborn