Cheshire, Inc. has a cash balance of $79,000; short-term investments of $19,000; net receivables of $61,000; and inventory of $470,000. Current liabilities total $200,000. What is Cheshire's current ratio? (Round your final answer to two decimal places.)

A) 3.15 to 1
B) 2.84 to 1
C) 0.80 to 1
D) 0.70 to 1


A) 3.15 to 1
Explanation: current assets (add cash, investments, receivables and inventory)/current liabilities; ex: ($79,000 + $19,000 + $61,000 + $470,000) / $200,000 = 3.15

Business

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