1.investments, $75,000 in net current receivables, and $12,000 in prepaid expenses. The total current liabilities of the firm are $90,000. Barts Industries' current ratio is:

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Current assets include cash, net current receivables, and prepaid expenses. So, ($50,000 + $75,000 + $12,000) / $90,000 = 1.47.

1Investments, $75,000 in Net Current Receivables, and $12,000 in Prepaid