In: Accounting
If current assets is $200,000, and current liabilities is $50,000 . what will be the current ratio.?
Solution:
Current Ratio = Current Assets / Liabilities
Here ,
Curent Assets = $200,000
Current Liabilities = $50,000
Therefore,
Current Ratio = $200,000 / $50,000
= 4
Therefore,
Current Ratio is 4:1.