Question

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

Answer 1

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.