Use the following information to answer questions
Bracewell Corporation’s current ratio is 2.5:1. The company’s current liabilities total $200,000.
-Bracewell has current assets of
A) $ 80,000.
B) $250,000.
C) $300,000.
D) $500,000.
E) The amount cannot be calculated from the information given.

Question

Use the following information to answer questions 
Bracewell Corporation’s current ratio is 2.5:1. The company’s current liabilities total $200,000. 
-Bracewell has current assets of
A) $ 80,000.
B) $250,000.
C) $300,000.
D) $500,000.
E) The amount cannot be calculated from the information given.

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Given the current ratio of 2.5:1 and current liabilities of $200,000, the current assets can be calculated as 2.5 * $200,000 = $500,000.

Use the Following Information to Answer Questions