What is the current ratio?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Selected information from the statement of financial position (balance sheet) of
Daisy Dollar, a small discount store, (dollar amounts are in thousands) below.
Cash 85
Account receivable 145
Inventory 290
Total assets 950
Current liabilities 400
Noncurrent liabilities 425
What is the current ratio?
a) 0.36 to 1
b) 0.58 to 1
c) 0.73 to 1
d) 1.3 to 1
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