Dratif Company's working capital is $33,000,and its current liabilities are $80,000.The company's current ratio is closest to which of the following?

Question

Quizplus · Accepted Answer

The current ratio is calculated as current assets divided by current liabilities. Given working capital is $33,000 and current liabilities are $80,000, current assets are $113,000 ($80,000 + $33,000). Thus, the current ratio is $113,000 / $80,000 = 1.41 to 1.

Dratif Company's Working Capital Is $33,000,and Its Current Liabilities Are