As a bank loan officer, you are considering a loan application by Peak Performance Sporting Goods. The company has provided you with the following information from its balance sheet Peak Performance's current ratio is:

Question

As a bank loan officer, you are considering a loan application by Peak Performance Sporting Goods. The company has provided you with the following information from its balance sheet  Peak Performance's current ratio is:

Quizplus · Accepted Answer

The current ratio is found by dividing total current assets by total current liabilities. Peak Performance's current assets = $210,000 and its current liabilities = $70,000. $210,000/$70,000 = 3.0.

As a Bank Loan Officer, You Are Considering a Loan