Vito Co. had current assets of $9,000 and current liabilities of $6,000 at the end of the year. Net income during the year was $

Question

Novay_Z [31]

2 years ago

11

Vito Co. had current assets of $9,000 and current liabilities of $6,000 at the end of the year. Net income during the year was $

21,000. The current ratio for the period is:

Business

1 answer:

Fynjy0 [20] · Answer 1 · 2022-11-17T12:30:21+03:00

The current ratio for Vito Co. with respect to the period under review is 1.5

<h3>What is current ratio?</h3>

The current ratio, also known as the working capital ratio, measures the capability of a business to be able to meet its short term financial obligations.

The Current Ratio formula is

= Current Assets / Current Liabilities

= $9,000 / $6,000

= 1.5

Therefore, the current ratio for Vito Co. with respect to the period under review is 1.5

Learn more about current ratio here: https://brainly.in/question/45000916