Cintron Corporation's total current assets are $370,000, its noncurrent assets are $740,000, its total current liabilities are $300,000, its long-term liabilities are $430,000, and its stockholders' equity is $380,000. The current ratio is closest to:
A) 0.81
B) 0.70
C) 0.50
D) 1.23

Question

Quizplus · Accepted Answer

The current ratio is calculated by dividing total current assets by total current liabilities. For Cintron Corporation, the current ratio is $370,000 / $300,000 = 1.23.

Cintron Corporation's Total Current Assets Are $370,000, Its Noncurrent Assets