Assume a company has working capital equal to $23,000 and total current liabilities equal to $75,000. The current ratio:

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. Given working capital (current assets - current liabilities) is $23,000 and current liabilities are $75,000, current assets are $98,000. Thus, the current ratio is $98,000 / $75,000 = 1.31.

Assume a Company Has Working Capital Equal to $23,000 and Total