The following information is available for Potter Company:
$\begin{array}{ll}
\text { Total Current Assets } & \$ 356,000 \
\text { Total Current Liabilities } & \$ 203,000\
\text { Total Assets }&\$1,000,000\
\text { Total Liabilities } & \$ 500,000 \
\text { Cash } & \$ 100,000
\end{array}$
What is the current ratio?
A) 0.76
B) 1.75
C) 2.05
D) 2.51

Question

Quizplus · Accepted Answer

The current ratio is calculated as Total Current Assets divided by Total Current Liabilities. For Potter Company, this is $356,000 / $203,000 = 1.75.

The Following Information Is Available for Potter Company What Is the Current Ratio? A) 0

The Following Information Is Available for Potter Company What Is the Current Ratio?
A) 0