A company has cash $80,000; temporary investments, $20,000; net receivables, $60,000; and inventory of $450,000. Current liabilities are $200,000. The current ratio is:

Name: A company has cash $80,000; temporary investments, $20,000; net receivables, $60,000; and inventory of $450,000. Current liabilities are $200,000. The current ratio is:
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Question

Quizplus · Accepted Answer

Current ratio = (Current assets / Current liabilities) = (80,000 + 20,000 + 60,000 + 450,000) / 200,000 = 3.05

A Company Has Cash $80,000; Temporary Investments, $20,000; Net Receivables