stuck on this question help would be appreciated
cash $85,000
temp investments $30,000
net receivables $60.000
inventory $350,000
current liabilities $300,000
what is the current ratio
thanks in advance
couldn't make up my mind if .74 to 1 or 1.75 to 1
maybe neither :)

Question

stuck on this question help would be appreciated
cash $85,000
temp investments $30,000
net receivables $60.000
inventory $350,000
current liabilities $300,000
what is the current ratio
thanks in advance
couldn't make up my mind if .74 to 1 or 1.75 to 1
maybe neither :)

anonymous · Answer

1.75 is correct...Current Assets / Current Liabilities

anonymous · Answer

thank you so much

whpalmer4 · Answer

current assets = 85k+30k+60k+350k = 525k
current liabilities = 300k
ratio is 525k/300k = 1.75