Question

Easiest question PLZ HELP ME quickly!!!!
Calculate the working capital ratio for the following scenario and explain what the
ratio means. Glenn’s Souvenir Shop has current assets of $125,000 and current
liabilities of $150,000.

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Answer 1

Explanation:

Working capital ratio = current assests / current liabilities

= $125,000 / $150,000.

= .80

Here is your answer.

Hope it's helpful for you.

Answer 2

Given :

Current Assets - ₹ 1,25,000

Current Liabilities - ₹ 1,50,000

To Find :

Working Capital Ratio or Current Ratio

Working Capital Ratio is also known as Current Ratio.

Solution :

${\underline{Working \: Capital \: Ratio \: = \frac{Current \: Assets}{Current \: Liabilities} }}$

$\to \: \frac{125000}{150000}$

$\to \: \frac{125}{150}$

$\to \: 125 : 150 \: or \: 0.83 :1$

Current Ratio :

Current Ratio or Working Capital ratio is ratio of Current assets to Current Liabilities.

Ratio Analysis :

Ratio analysis is the method of Calculating and interpreting financial ratios to asses the financial strength and weakness underlying the performance of an enterprise.

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