Dratif Corporation's working capital is $60,000 and its current liabilities are $192,000. The corporation's current ratio is closest to:
A) 1.31
B) 0.31
C) 2.31
D) 0.76

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. If working capital is $60,000 and current liabilities are $192,000, then current assets are $252,000 ($192,000 + $60,000). The current ratio is $252,000 / $192,000 = 1.31.

Dratif Corporation's Working Capital Is $60,000 and Its Current Liabilities