Business FinancesQuestion 1233 of 1605
A contractor with a 2.0 current ratio has $160,000 in current liabilities. What are his current assets?
a.$240,000
b.$80,000
c.$320,000
d.$160,000
Explanation
Current ratio = current assets / current liabilities. Current assets = ratio x current liabilities = 2.0 x $160,000 = $320,000.
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