Question
SDJ, Inc. has a net working capital of $1,910, current liabiliteis of $5,610, and inventory of $1,265. What is the current ratio? My Solution: NWC
SDJ, Inc. has a net working capital of $1,910, current liabiliteis of $5,610, and inventory of $1,265.
What is the current ratio?
My Solution:
NWC = CA - CL
CA = CL + NWC or 5610 + 1910 = 7,520
CR = CA / CL
CR = 7,520 / 5,610 = 1.340 or 1.34
I checked my answer and it says it is incorrect. what am I missing?
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Financial Accounting
Authors: Thomas Dyckman, Robert Magee, Glenn Pfeiffer
3rd Edition
1934319600, 978-1934319604
