The Terence Hill Company has current assets of $350,000 and a current ratio of .7. Its current liabilities, therefore, must equal $500,000.

Name: The Terence Hill Company has current assets of $350,000 and a current ratio of .7. Its current liabilities, therefore, must equal $500,000.
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The current ratio is calculated as current assets divided by current liabilities. If the current ratio is 0.7, then $350,000 / current liabilities = 0.7. Solving for current liabilities gives $350,000 / 0.7 = $500,000.

The Terence Hill Company Has Current Assets of $350,000 and a Current