Hardy Company has current assets of $90,000, current liabilities of $100,000, long-term, assets of $180,000 and long-term liabilities of $80,000. Hardy 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 $90,000 - $100,000 = -$10,000. The current ratio is calculated as current assets divided by current liabilities, which is $90,000 / $100,000 = 0.90:1.

Hardy Company Has Current Assets of $90,000, Current Liabilities of $100,000