Answered

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Carl Lester has liquid assets of $3,400 and current liabilities of $1,800.(a) What is his current ratio

Sagot :

abiolataiwo2015

Answer:

A. Current ratio = 1.9

B. A current ratio of 1.9 will be totally viewed as less than desirable.

Explanation:

(a) Calculation for What is his current ratio

Using this formula

Current ratio= Liquid assets / Current liabilities

Let plug in the formula

Current ratio= $3,400 / $1,800

Current ratio = 1.9

(b) The comment that best describes his financial position is that A current ratio of 1.9 will be totally viewed as less than desirable.

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