Use the following information to answer the next three questions:
A partial balance sheet ($s in thousands)for Captain D's Sportswear is shown below.

-The current ratio is:
A)1.98.
B)1.58.
C)1.17.
D)0.66.

Question

Use the following information to answer the next three questions:
A partial balance sheet ($s in thousands)for Captain D's Sportswear is shown below.
 
-The current ratio is:
A)1.98. 
B)1.58. 
C)1.17. 
D)0.66.

Quizplus · Accepted Answer

In order to calculate the current ratio, we divide current assets ($189,000) by current liabilities ($119,700):

Current ratio = $189,000 / $119,700 = 1.58

Therefore, the answer is B.

Use the Following Information to Answer the Next Three Questions