The current ratio for a company with current assets of $78,000,quick assets of $42,000,total assets of $177,000 current liabilities of $60,000 and net sales of $90,000 would be:
A)0)70.
B)2)95.
C)1)30.
D)1)50.

Question

Quizplus · Accepted Answer

Current ratio is calculated by dividing current assets by current liabilities.

Current Ratio = Current assets / Current liabilities

Current assets = $78,000 
Current liabilities = $60,000

Current Ratio = $78,000 / $60,000 = 1.30

Therefore, the current ratio for the given company is 1.30.

The Current Ratio for a Company with Current Assets of $78,000,quick