A company’s assets include cash of $6,000; accounts receivable of $10,000; inventories of $56,000; and plant assets of $28,000, totaling

A company’s assets include cash of $6,000; accounts receivable of $10,000; inventories of $56,000; and plant assets of $28,000, totaling $100,000. Its liabilities include accounts payable of $25,000 and bonds payable of $45,000, totaling $70,000. Its stockholders’ equity includes $10,000 of capital stock and $20,000 of retained earnings, totaling $30,000. What is the company’s current ratio

Leave a Reply

Your email address will not be published. Required fields are marked *