QUESTIONS A firm has not working capital of $3,800 and current assets of $11,700. What is...

Question

Question

Answer 1

Answer #1

The current ratio is computed by using the below formula:

Current Ratio = Current Assets / Current Liabilities

Net Working Capital = Current Assets - Current Liabilities

$ 3,800 = $ 11,700 - Current Liabilities

Current Liabilities = $ 7,900

So the current ratio will be:

= $ 11,700 / $ 7,900

= 1.48 Approximately

So the correct answer is option A i.e. 1.48

Feel free to ask in case of any query relating to this question

Answer 2

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