The firm's initial ratio of current to total assets is ________.(See Table 14.1)
A)1:3.2
B)3:1
C)2:3
D)3:2.3

Name: The firm's initial ratio of current to total assets is ________.(See Table 14.1) A)1:3.2 B)3:1 C)2:3 D)3:2.3
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Question

Quizplus · Accepted Answer

From Table 14.1, we can see that the current assets for the firm are $320,000 and the total assets are $1,024,000. Therefore, the initial ratio of current to total assets is 320,000/1,024,000 = 1:3.2. Thus, the correct answer is A) 1:3.2.

The Firm's Initial Ratio of Current to Total Assets Is