The following amounts have been taken from the recent financial statements for Merema Industries:
To the closest hundredth, which of the following amounts is Merema's operating-cash-flow-to-current-liabilities ratio?
A) 2.51
B) 2.23
C) 2.88
D) 1.83

Question

The following amounts have been taken from the recent financial statements for Merema Industries:
 To the closest hundredth, which of the following amounts is Merema's operating-cash-flow-to-current-liabilities ratio?
A) 2.51 
B) 2.23 
C) 2.88 
D) 1.83

Quizplus · Accepted Answer

$5,335,000 / [($1,860,000 + $2,925,000)/2] = $5,335,000 / $2,392,500 = 2.23

The Following Amounts Have Been Taken from the Recent Financial