Fischers Inc. has cash of $63,000; net Accounts Receivable of $77,000; short-term investments of $20,000 and inventory of $68,000. It also has $47,000 in current liabilities and $73,000 in long-term liabilities. What is the current ratio for Fischers Inc.?
A) 1.55
B) 3.40
C) 1.34
D) 4.85
D) 4.85
Explanation: current assets (cash, A/R, investments, inventory)/current liabilities; ex: ($63,000 + $77,000 + $20,000 + $68,000)/$47,000 = 4.85
Business
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