Dratif Corporation's working capital is $33,000 and its current liabilities are $80,000. The corporation's current ratio is closest to:
A) 1.41
B) 0.59
C) 3.42
D) 0.41

Question

Quizplus · Accepted Answer

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

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