Question

In: Accounting

If current assets is $200,000, and current liabilities is $50,000 . what will be the current...

If current assets is $200,000, and current liabilities is $50,000 . what will be the current ratio.?

Solutions

Expert Solution

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.


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