Rosewood Company had current assets of $582, current liabilities of $433, total assets of $732, and no long-term liabilities. If Rosewood executes a six-month note for $500, what is the new current ratio?

Question

Quizplus · Accepted Answer

The new current assets will be $582 + $500 = $1082, and the new current liabilities will be $433 + $500 = $933. The new current ratio is $1082 / $933 = 1.16.

Rosewood Company Had Current Assets of $582, Current Liabilities of $433