In Scenario 8-2 above,after analyzing the current ratio,you determined that
A) Denny has a problem.
B) Denny can cover his current liabilities 1.51 times with his current assets.
C) Denny is too far off of the industry average in this case.
D) Denny has inventory that cannot easily be converted into cash.

Question

Quizplus · Accepted Answer

The current ratio of 1.51 indicates that Denny can cover his current liabilities 1.51 times with his current assets, suggesting a relatively healthy liquidity position.

In Scenario 8-2 Above,after Analyzing the Current Ratio,you Determined That