The Balance Sheet of Hemp Ltd at 30 June 2012

question 11

Multiple Choice

The balance sheet of Hemp Ltd at 30 June 2012 showed: noncurrent assets $500 000; noncurrent liabilities $320 000; total liabilities $400 000; and shareholders' equity $300 000.What was the working capital ratio of Hemp Ltd at 30 June 2012?

• A) 2.5:1
• B) 1.75:1
• C) $120 000
• D) 1.56:1.

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