Team Shirts Has $233,000 in Total Current Assets and $141,500

question 158

Essay

Team Shirts has $233,000 in total current assets and $141,500 in total current liabilities.
1.Calculate the current ratio (rounded to one decimal place)for Team Shirts.
2.Is this a more favorable ratio than 0.9 to 1?

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Definitions:

Depository Institutions Deregulation

The reduction or elimination of government regulations on banks and similar institutions to foster a more efficient and competitive financial environment.

Checking Accounts

Bank accounts that allow depositors to write checks against deposited funds for payments to third parties.

Reserve Requirements

Regulations set by central banks that determine the minimum amount of reserves a bank must hold against deposits, affecting the money supply.

U.S. Government Securities

Financial instruments issued by the United States Department of the Treasury to finance government spending, including bonds, bills, and notes.