Bathez Corp. has receivables of $334,227, inventory of $451,000, cash of $73,913, and accounts payables of $469,553. What is the firm's current ratio? Round your final answer to two decimal places.
A) 1.83
B) 0.73
C) 1.67
D) None of the above

Question

Quizplus · Accepted Answer

Current ratio = (Current assets / Current liabilities)Current assets = Receivables + Inventory + CashCurrent assets = $334,227 + $451,000 + $73,913 = $859,140Current liabilities = Accounts payables = $469,553Current ratio = $859,140 / $469,553 = 1.83 (rounded to two decimal places)