Question

The current assets of Sheridan Company are $292400. The current liabilities are $116960. The current ratio expressed as a proportion is

Answer 1

The current ratio expressed as a proportion is 2.5

Explanation:

Given :

The current assets = $292400

The current liabilities are $116960.

To find :

The current ratio

Solution :

Current Ratio =

$\sf{\dfrac{Current \: Assets }{Current \: Liabilities}}$

$\sf{\implies{\dfrac{292400}{116960}}}$

$\implies$ 2.5

Therefore, The current ratio expressed as a proportion is 2.5