Question
Calculate the current ratio for each business below. Which business has the best short term solvency position given your calculations? SHOW WORK Company Current Assets
Calculate the current ratio for each business below. Which business has the best short term solvency position given your calculations? SHOW WORK
| Company | Current Assets | Total Assets | Current Liabilities | Total Liabilities | Net Income | Current Ratio | ||
| Alpha | 74,524 | 168,672 | 60,100 | 150,600 | 94,958 | |||
| Beta | 207,536 | 290,290 | 152,600 | 203,000 | 207,536 | |||
| Gamma | 60,125 | 66,929 | 32,500 | 52,700 | 36,725 | |||
| Delta | 95,335 | 182,520 | 82,900 | 135,200 | 105,283 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the current ratio for each business we divide the current assets by the current liabi...
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
6th Canadian edition
1118644948, 978-1118805084, 1118805089, 978-1118644942
