Washington Corporation has the following financial data for 2011 and 2010.

-What is Washington's current ratio for 2011?
A)1.08
B).79
C)1.27
D)1.50

Question

Washington Corporation has the following financial data for 2011 and 2010.
 
-What is Washington's current ratio for 2011?
A)1.08 
B).79 
C)1.27 
D)1.50

Quizplus · Accepted Answer

Current ratio = Current assets / Current liabilities. 
For 2011: 
Current assets = 1,810,000 
Current liabilities = 1,425,000 
Current ratio = 1,810,000 / 1,425,000 = 1.27. 
Therefore, the correct answer is option C.

Washington Corporation Has the Following Financial Data for 2011 and 2010