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Based on the following information from Scranton Company's balance sheet, calculate the current ratio. Current assets $ 126,000 Investments 57,800 Plant assets 380,000 Current liabilities 52,000 Long-term
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Based on the following information from Scranton Company's balance sheet, calculate the current ratio. Current assets $ 126,000 Investments 57,800 Plant assets 380,000 Current liabilities 52,000 Long-term liabilities 103,000 Retained earnings 408,800

User LeftOnTheMoon
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1 Answer

3 votes

Answer:

2.42

Step-by-step explanation:

The current ratio is a type of liquidity ratio. Liquidity ratios calculate the ability of a firm to meet its short term obligations

Current ratio = current assets / current liabilities = $ 126,000 / $52,000 = 2.42

User Hannon Qaoud
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