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Assume that a business has $50000 of current assets and $40000 of current liabilities. What is the company’s current ratio?
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40 votes
40 votes
Assume that a business has $50000 of current assets and $40000 of current liabilities. What is the company’s current ratio?

User Akostha
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1 Answer

16 votes
16 votes

Answer:

The company's current ratio is 1.25.

Step-by-step explanation:

The current ratio is calculated by dividing the current assets by the current liabilities:

current assets=$50000

current liabilities=$40000

current ratio=$50000/$40000

current ratio=1.25

According to this, the answer is that the company's current ratio is 1.25.

User Mayid
by
3.2k points
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