Calculate the Current Ratio in Each of the Following Cases

question 105

Essay

Calculate the current ratio in each of the following cases.
$$\begin{array} { | l | r | r | } \hline & \text { Current Assets } & \text { Current Libilities } \\\hline \text { Case 1 } & \$ 60,000 & \$ 30,000 \\\hline \text { Case 2 } & \$ 150,000 & \$ 85,000 \\\hline \text { Case 3 } & \$ 57,000 & \$ 53,000 \\\hline \text { Case 4 } & \$ 130,000 & \$ 127,000 \\\hline \text { Case 5 } & \$ 70,000 & \$ 110,000 \\\hline\end{array}$$

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Definitions:

Firm Commitment

In finance, an underwriter's promise to purchase all the unsold shares of an issue, thereby guaranteeing the amount of capital that the issuer will raise.

Standby Underwriting

A commitment by an underwriter to purchase any unsold shares during an offering, ensuring that the issuing company raises the full amount of capital.

Best Efforts

A contractual clause requiring one party to exert all reasonable attempts to fulfill the terms of the agreement.

Preemptive Rights

The rights that allow existing shareholders to purchase new shares in a company before the company offers them to the public, to maintain their proportionate ownership.