Monkee's Company has current assets of $45000 current liabilities of $50000 long-term assets of $90000 and long-term liabilities of $40000. Monkee's Company's working capital and its current ratio are:

Question

Quizplus · Accepted Answer

Working capital is calculated as current assets minus current liabilities, which is $45,000 - $50,000 = -$5,000. The current ratio is calculated as current assets divided by current liabilities, which is $45,000 / $50,000 = 0.9:1.

Monkee's Company Has Current Assets of $45000 Current Liabilities of $50000