Asked by Grant Friesen on Jun 26, 2024
Verified
Maraby Corporation's current ratio at the end of Year 2 was closest to:
A) 1.34
B) 1.72
C) 0.60
D) 0.44
Current Ratio
A measure of a business's capability to meet its obligations due in less than one year, focusing on its short-term financial health.
Company
A legal entity formed by individuals, stockholders, or shareholders, with the purpose of operating for profit.
- Learn the technique for calculating and understanding the current ratio to evaluate the short-term financial health of a company.
Verified Answer
ZK
Zybrea KnightJul 02, 2024
Final Answer :
B
Explanation :
Current ratio = Current assets ÷ Current liabilities = $620 ÷ $360 = 1.72 (rounded)
Learning Objectives
- Learn the technique for calculating and understanding the current ratio to evaluate the short-term financial health of a company.