Question

calculate current ratio from the following working capital 45000 total debt 100000 and long-term debt 70000.

Answer 1

current liabilities= total debt - long term debt
= 100000-70000
=30000

working capital=current assets-current liability
45000= current assets - 30000
current assets=75000

current ratio =
$current \: assets \: \div \: current \: liabilties$
$75000 \div 30000$
2.5:1