Ask Question
10 August, 01:23

As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The firm's current assets were $120,000, its fixed assets were $240,000, its current liabilities were $80,000, and its long-term liabilities were $60,000. Given these facts, what is the firm's current ratio

+2
Answers (1)
  1. 10 August, 04:42
    0
    1.5

    Explanation:

    Current ratio = current asset/current liabilities

    This ratio is used to determine how quickly the current assets can be used to settle the current liabilities as they fall due.

    current assets = $120,000

    current liabilities = $80,000

    The firm's current ratio = $120,000/$80,000

    = 1.5
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “As the accountant for Marston Retail Stores, you must calculate the current ratio for the firm's last accounting period. The firm's current ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers