Question

Enrique's Used Car Sales has current assets of $923,740 and current liabilities of $385,120. Find the current ratio.2.12.42.73.0None of these choices are correct.

Answer 1

`\text{Current ratio = }\frac{Current\text{ assets}}{Current\text{ liabilities}}`

The above is the formula of current ratio,

Current assets =$923740 and Current liabilities

`\begin{gathered} \text{Current assets = 923740 dollars} \\ \text{Current liabilities = 385120 dollars} \end{gathered}`

Substituting into the formula,

`\text{Current ratio =}(923740)/(385120)=2.399\approx2.4`

Hence, none of the choices are correct, Option E is the correct option.