Question

Bathez Corp. has receivables of $334,227, inventory of $451,000, cash of $73,913, and accounts payables of...

Bathez Corp. has receivables of $334,227, inventory of $451,000, cash of $73,913, and accounts payables of $469,553. What is the firm's current ratio? Round your final answer to two decimal places.

A) 1.83
B) 0.73
C) 1.67
D) None of the above

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Answer #1

A) 1.83

Current assets = $73,913 + $451,000 + $334,227 = $859,140

Current liabilities = $469,553

Current ratio = Current assets / Current liabilities

Current ratio = $859,140 / $469,553

Current ratio = 1.83

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