The current ratio for a company with current assets of $73,000, quick assets of $31,000, total assets of $160,000, current liabilities of $46,000, and net sales of $77,000 would be: (Round your final answer to two decimal places.)
A)0.19.
B)1.59.
C)3.48.
D)0.94.

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Therefore, the current ratio for this company is $73,000 / $46,000 = 1.587, which rounds to 1.59.

The Current Ratio for a Company with Current Assets of $73,000