Question
Co XYZ balance sheet shows current assets of $62,000 and total current liabilities of 55,300. We then calculate the current ratio as follows: Current Ratio
Co XYZ balance sheet shows current assets of $62,000 and total current liabilities of 55,300. We then calculate the current ratio as follows:
Current Ratio $62,000/ $55,3005 = 1.12 What would the result of 1.12 mean about the companys ability to pay its current obligations?
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Financial Accounting The Cornerstone Of Business Decision Making
Authors: Jay S Rich, Jeff Jones, Linda Ann Myers
5th Edition
0357132696, 978-0357132692
