Problem

A company has total assets of $500,000 and noncurrent assets of $400,000. Current liabilit...

A company has total assets of $500,000 and noncurrent assets of $400,000. Current liabilities are $40,000. What is the current ratio?

a. 12.5

b. 10.0

c. 2.5

d. Cannot be determined without additional information.

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