Dratif Corporation's working capital is $38,000 and its current liabilities are $100,000. The corporation's current ratio...

Question

Question

Dratif Corporation's working capital is $38,000 and its current liabilities are $100,000. The corporation's current ratio is closest to:

1.38

0.72

2.38

0.38

Answer 1

Answer #1

working capital =current assets- current liabilities

Hence current assets=(38000+100,000)=$138000

Hence current ratio=current assets/current liabilities

=$138000/$100,000

=1.38

Answer 2

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