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Pt 2 What is the debt ratio of the firm
QUESTION 39 1 points For the next 9 questions suppose the following data: (Use a 360-day year.) Balance Sheet Cash& WS Receivables Inventories Fixed Assets 20,000 Accruals 50,000 Accounts Payable40,000 80,000Notes Payable ies Total Assets ota Annual Sales$1,500,000 Net Income $60,000 Stock price $60 Cost of Goods Sold $1.200,000 What is the current ratio of the firm? 1.25 1.42 1.80 O 1.92 2.45 Click Save and Submit to save and submit. Click Save All Answers to save all ansu
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Answer #1

Answer: Option A:1.25

Current Ratio= (cash+ Receivables+ Inventory)/(Accruals+ Accounts Payable+ Notes Payables)

Current ratio= (20000+50000+80000)/(30000+40000+50000)=1.25

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