Calculate the Current Ratio Given the Following Information: Current Liabilities

question 179

Multiple Choice

Calculate the current ratio given the following information: current liabilities = $40,000; sales = $90,000; cost of goods sold = $32,000; cash ratio = 1.10; accounts receivable turnover = 5;
Inventory turnover = 3.

• A) 1.60
• B) 1.70
• C) 1.80
• D) 1.90
• E) 2.00

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Definitions:

Mixed Method Approach

An approach in research that combines qualitative and quantitative methods to gain a comprehensive understanding of a research question.

Research Methods

Strategies used to collect data.

Participant Observation

A qualitative research method where the researcher immerses themselves in the community or situation they are studying to observe and participate in its activities.

Semi-Covert Research

Research conducted with some level of secrecy or without fully disclosing the study's purpose to participants, often to observe behaviors naturally.