Kramer Industries has cash of $ 42 comma 000 ; net Accounts Receivable of $ 47 comma 000 ; shortminusterm investments of $ 13 comma 000 and inventory of $ 30 comma 000. It also has $ 30 comma 000 in current liabilities and $ 52 comma 000 in longminusterm liabilities. What is the current ratio for Kramer Industries?

Question

Clark Dixon

Business

24 May, 21:06

Kramer Industries has cash of $ 42 comma 000 ; net Accounts Receivable of $ 47 comma 000 ; shortminusterm investments of $ 13 comma 000 and inventory of $ 30 comma 000. It also has $ 30 comma 000 in current liabilities and $ 52 comma 000 in longminusterm liabilities. What is the current ratio for Kramer Industries?

+4

Answers (1)

Know the Answer?

Jagger Barry · Answer 1

4.4

Explanation:

Given the following data from Kramer Industries -

Current assets;

Cash = $42,000

Account receivables = $47,000

short term investments = $13,000

Inventory = $30,000

Current assets = 42000 + 47000 + 13000 + 30000

= $132,000

Current liabilities = $30,000

Current ratio = current assets/current liabilities

= 132000/30000

= 4.4

The current ratio of Kramer Industries = 4.4