Question

Selected data for the Barksdale Company follow EE (Click the icon to view the data.) Based on these facts, what are Barksdale's current ratio and debt ratio? (Ratios have been rounded to three decimal places.) Current ratio OA. 1.400 OB. 7.614 OC, 1.603 O D. 1.263 Debt ratio 0.624 0.714 0.624 0.267 1 Data Table Current assets Long-term assets Total revenues $ 39,200 Current liabilities 174,000 Long-term liabilites 192,000 Total expenses $ 28,000 105,000 152,000 Print Done

Answer 1

Correct answer---(A) 1.400 and 0.624

	Numerator	/	Denominator		Ratios
Current ratio	Current assets	/	Current liabilities
	$            39,200.00		$            28,000.00	=	1.400
Debt Ratio	Total debts	/	Total Assets
	$        1,33,000.00		$        2,13,200.00	=	0.624

Total assets= Current assets plus long term assets

Total Debts = Current liabilities plus Long term liabilities