Peter's Motor Works has total assets of $689,400,long-term debt of $299,500,total equity of $275,000,net fixed assets of $497,800,and sales of $721,500.The profit margin is 4.6 percent.What is the current ratio?
A)0.60
B)0.91
C)1.01
D)1.67
E)2.16

Question

Quizplus · Accepted Answer

Current ratio = ($689,400 - $497,800)/($689,400 - $299,500 - $275,000) = 1.67

Peter's Motor Works Has Total Assets of $689,400,long-Term Debt of $299,500,total