Planter Zone's working capital is $32,500 and its current assets are $85,100.How much is the company's current ratio?
A)0.72
B)1.62
C)2.62
D)1.38

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Given that working capital (current assets - current liabilities) is $32,500 and current assets are $85,100, we can find current liabilities as $85,100 - $32,500 = $52,600. Therefore, the current ratio is $85,100 / $52,600 = 1.62.

Planter Zone's Working Capital Is $32,500 and Its Current Assets