Question

Given the following information, calculate the current ratio:

Liquid assets = $5,000
Monthly credit payments = $800
Monthly savings = $760
Net worth = $75,000
Current liabilities = $2,000
Take-home pay = $2,300
Gross income = $3,500
Monthly expenses = $2,050

Multiple Choice

2.44

2.50

6.25

0.16

0.41

Answer 1

2.50

Step-by-step explanation:

Current ratio = Current assets/Current liabilities

= $5,000/$2,000

= 2.50

Therefore, The current ratio is 2.50