Question

Alans chairs has current assets of $138,000 and current liabilities of $102,750. Find the current ratio. Round to the nearest hundredth

Answer 1

The current ratio is 1.34

Explanation:

we know that

The current ratio is equal to divide the total current assets by the total current liabilities

Let

x ----> the total current assets

y ----> the total current liabilities

z ----> the current ratio

so

`z=(x)/(y)`

we have

`x=\$138,000\\y=\$102,750`

substitute

`z=(138,000)/(102,750)=1.34`