The following amounts have been taken from the recent financial statements for Bright Star Industries:
To the closest hundredth, which of the following amounts is Bright Star's operating cash flow to current liabilities ratio?
A) 2.62
B) 1.09
C) 2.09
D) 1.75

Question

The following amounts have been taken from the recent financial statements for Bright Star Industries:
 To the closest hundredth, which of the following amounts is Bright Star's operating cash flow to current liabilities ratio?
A) 2.62 
B) 1.09 
C) 2.09 
D) 1.75

Quizplus · Accepted Answer

Rationale:
$6,650,000 / [($2,480,000 + $2,600,000)/2] = 2.62

The Following Amounts Have Been Taken from the Recent Financial