Question

Based on the following information from Schrute Company's balance sheet, calculate the current ratio. Current assets $ 141,000 Investments 60,800 Plant assets 430,000 Current liabilities 57,000 Long-term liabilities 108,000 A. Schrute, Capital 466,800

Answer 1

Answer:

2.47

Explanation:

Current ratio measure Liquidity of the firm and is calculated as ;

Current ratio = Current Assets ÷ Current Liabilities

Where,

Current Assets = $ 141,000

Current Liabilities = $57,000

Then,

Current ratio = $ 141,000 ÷ $57,000

                     = 2.47