Question

As of February 1, 2017, current assets were $138,300 and current liabilities were $35,800. Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 : 1.) Current ratio as of February 1, 2014 :1 Feb. 3 :1 Feb. 7 :1 Feb. 11 :1 Feb. 14 :1 Feb. 18 :

Answer 1

The ratio for February 1st will be 3.86 : 1

3.86 dollars of assets per dollar of liabilities.

Step-by-step explanation:

the current ratio is the result of the division between current asset and current liabilities:

`(current \: assets)/(current \: liabilities)`

138,300/35,800 = 3.8631

The ratio for February 1st will be 3.86 : 1 (after rounding to two decimal places)

this means: 3.86 dollars of assets per dollar of liabilities.