The current ratio at year-end (rounded to the nearest tenth) is:
A) 2.3 to 1.
B) 6 to 1.
C) 3.5 to 1.
D) Some other answer.

Question

Quizplus · Accepted Answer

To calculate the current ratio, we need to divide current assets by current liabilities. Plugging in the numbers from the data given:

Current assets = 420,000
Current liabilities = 120,000

Current ratio = 420,000/120,000 
Current ratio = 3.5 to 1

Therefore, the answer is C) 3.5 to 1, as this is the closest rounded ratio we can get from the given data.

The Current Ratio at Year-End (Rounded to the Nearest Tenth)