Question

Gnas Corporation's total current assets are $258,000, its noncurrent assets are $638,000, its total current liabilities are $192,000, its long-term liabilities are $522,000, and its stockholders' equity is $182,000. The current ratio is closest to:________.

Answer 1

Answer:

1.34

Explanation:

Data provided in the question:

Gnas Corporation's total current assets = $258,000

Noncurrent assets = $638,000

Total current liabilities = $192,000

Long-term liabilities = $522,000

Stockholders' equity = $182,000

Now,

Current Ratio = ( Current Assets ) ÷ ( current liabilities )

or

Current Ratio = $258,000 ÷ $192,000

or

Current Ratio = 1.34