A Company Has $200 in Cash, $500 in Accounts Receivable

question 130

Multiple Choice

A company has $200 in cash, $500 in accounts receivable, and $700 in inventory.If current liabilities are $400, then the current ratio would be

• A)1.75 to 1
• B)2.25 to 1
• C)3.00 to 1
• D)3.50 to 1