Use the following information for questions 83-85.
Luminus Corporation's books revealed the following for 2016 and 2015:
-The current ratio for the 2016 year-end is
A) 2.85.
B) 2.62.
C) 1.29.
D) 1.02.

Question

Use the following information for questions 83-85.
Luminus Corporation's books revealed the following for 2016 and 2015: 
-The current ratio for the 2016 year-end is
A) 2.85. 
B) 2.62. 
C) 1.29. 
D) 1.02.

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. In this case, current assets are $1,000,000 and current liabilities are $350,000, so the current ratio is $1,000,000 / $350,000 = 2.85.

Use the Following Information for Questions 83-85