Question

Gibson Goods has current​ assets, including cash and accounts​ receivable, of​ $377,000. It owes​ $190,000 in​ short-term debt, including trade credit and accounts payable. What is its current​ ratio?

Answer 1

Answer: 1.98

Step-by-step explanation:

Current ratio = Current Asset/Current Liability

Current ratio = $377,000/$190,000

Current ratio = 1.98