ABC inc

Finance Aug 13, 2020

ABC inc. has net working capital of $100,000 and current assets $400,000find the company current ratio? Select one: O a. 2x O b. 2.5x O c. 2.3x O d. 1.33x

Expert Solution

Net working capital of the company is always calculated by-

Net working capital= (current asset- current liability)

Current liability= (4,00,000-1,00,000)= 3,00,000

Current ratio= (current asset/current liability)

=( 4,00,000/3,00,000)= 1.33333

Correct answer is option (d) 1.33333

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