A company has $110,000 in current assets; $600,000 in total assets; $80,000 in current liabilities, and $140,000 in total liabilities. Calculate the current ratio of the company. (Round your answer to two decimal places.)
A) 1.38
B) 1.82
C) 1.73
D) 0.79

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. For this company, the current ratio = $110,000 / $80,000 = 1.375, which rounds to 1.38.

A Company Has $110,000 in Current Assets; $600,000 in Total