Calculate the Current Ratio for Each of the Following Companies

question 136

Essay

Calculate the current ratio for each of the following companies and identify the company with the strongest liquidity position.
$$\begin{array} { | l | l | l | } \hline & \text { Current Astets } & \text { Current Liabilities } \\\hline \text { Company A } & \$ 1,752,000 & \$ 1,267,000 \\\hline \text { Company I } & \$ 863,500 & \$ 481,000 \\\hline \text { Company T } & \$ 366,800 & \$ 419,000 \\\hline\end{array}$$

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Definitions:

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