Spaceship Enterprises has a current ratio of 1.9 and working capital equal to $75,000. Total current liabilities are equal to:

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Given a current ratio of 1.9 and working capital of $75,000, we can set up the equation: (Current Assets - Current Liabilities) = $75,000. Since Current Assets = 1.9 * Current Liabilities, substituting gives: (1.9 * Current Liabilities - Current Liabilities) = $75,000. Solving for Current Liabilities gives $83,333.

Spaceship Enterprises Has a Current Ratio of 1