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27 November, 11:15

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

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  1. 27 November, 11:32
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    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
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