Question

Alans chairs has current assets of $138,000 and current liabilities of $102,750. Find the current ratio. Round to the nearest hundredth

Answer 1

Answer:

The current ratio is 1.34

Step-by-step explanation:

we know that

The current ratio is equal to divide the total current assets by the total current liabilities

Let

x ----> the total current assets

y ----> the total current liabilities

z ----> the current ratio

so

$z=\frac{x}{y}$

we have

$x=\ 138,000\\y=\ 102,750$

substitute

$z=\frac{138,000}{102,750}=1.34$