Eral Company has $17,000 in cash, $3,000 in marketable securities, $36,000 in curren? receivables, $24,000 in inventories, and $45,000 in current liabilities. ratio is closest to:

A) 0.80 to 1.
B) 0.44 to 1.
C) 1.24 to 1.
D) 1.78 to 1.

Question

AISHWARYA MEHRA MBA 2019-21 · Accepted Answer

Final Answer : C, Explanation :  The current ratio is calculated as Current Assets / Current Liabilities. For Eral Company, Current Assets = $17,000 (cash) + $3,000 (marketable securities) + $36,000 (current receivables) + $24,000 (inventories) = $80,000. Current Liabilities = $45,000. Therefore, the current ratio = $80,000 / $45,000 = 1.78 to 1.

Eral Company has $17,000 in cash, $3,000 in marketable securities, $36,000 in curren? receivables, $24,000 in inventories, and $45,000 in current liabilities. ratio is closest to:

A) 0.80 to 1.
B) 0.44 to 1.
C) 1.24 to 1.
D) 1.78 to 1.

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Learning Objectives

Related questions

Eral Company has $17,000 in cash, $3,000 in marketable securities, $36,000 in curren? receivables, $24,000 in inventories, and $45,000 in current liabilities. ratio is closest to:A) 0.80 to 1.B) 0.44 to 1.C) 1.24 to 1.D) 1.78 to 1.

Definitions

Learning Objectives

Learning Objectives

Related questions

Eral Company has $17,000 in cash, $3,000 in marketable securities, $36,000 in curren? receivables, $24,000 in inventories, and $45,000 in current liabilities. ratio is closest to:

A) 0.80 to 1.
B) 0.44 to 1.
C) 1.24 to 1.
D) 1.78 to 1.