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Assuming rent is never paid more than two months in advance and the note and interest payable are both long term, what is the company’s current ratio at december 31, 2026?

User Simon Byrne
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1 Answer

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25 votes

Answer:To calculate the current ratio at December 31, 2026, we need more information about the company's assets and liabilities. The current ratio is a financial ratio that measures a company's ability to pay its short-term liabilities with its short-term assets.

The formula for the current ratio is:

Current Ratio = Current Assets / Current Liabilities

Current assets typically include cash, accounts receivable, and inventory, while current liabilities include accounts payable, short-term debt, and accrued expenses.

Since the question only provides information about rent payment and long-term notes and interest payable, we don't have enough information to calculate the current ratio accurately. We need specific values for current assets and current liabilities.

To calculate the current ratio, you would need to gather additional financial information from the company's balance sheet or financial statements. This information should include the values of current assets and current liabilities as of December 31, 2026. With these figures, you can then divide current assets by current liabilities to determine the current ratio.

User Uttam Kumar Roy
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