The following contains information from the records of the W

The following contains information from the records of the Wellborm Engineers and Archite Wellbom Engineers and Architects Selected Financial Information December 31, 2015 Current Assets $74,000 44,000 95,000 60,000 50,000 30,000 Current Liabilities Long-term Assets Long-term Liabilities Total Revenues Total Expenses Which of the following statements is an accurate interpretation of the current ratio of Wellborn Engineers and Architects? The company has $0.59 of current assets for every $1.00 of current liabilities. O The company has $2.32 of current assets for every $1.00 of liabilities. O The company has $1.68 of current assets for every $1.00 of current liabilities O The company has $1.58 of current assets for every $1.00 of liabilities

Solution

Answer = The company has 1.68 of Current Assets for every $1 of Current Liability

Current ratio =Current Assets / Current Liabilities

= 74,000 / 44,000

Current ratio = 1.68:1

The company has 1.68 of Current Assets for every $1 of Current Liability