A firm has net working capital of $6,800 and current assets of $21,800.What is the current ratio?
A).69
B).60
C)1.45
D)1.67
E).92

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Given net working capital is $6,800 and current assets are $21,800, current liabilities are $21,800 - $6,800 = $15,000. Thus, the current ratio is $21,800 / $15,000 = 1.45.

A Firm Has Net Working Capital of $6,800 and Current