Melanie's Diner has current assets of $75,000 and current liabilities of $16,500. She is expecting sales this week of $12,500. What is Melanie's Diner's current ratio?
A) 5.30
B) 4.54
C) 6.0
D) 8.3
E) 22

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing current assets by current liabilities. For Melanie's Diner, the current ratio = $75,000 / $16,500 = 4.54.

Melanie's Diner Has Current Assets of $75,000 and Current Liabilities