How would you find the current ratio? Acid test ratio? New current ratio? New acid test ratio?

A company has current assets of $86,000 (of which $39,000 is inventory and prepaid items) and current liabilities of $39,000. What is the current ratio? What is the acid-test ratio? If the company borrows $17,000 cash from a bank on a 120-day loan, what will its current ratio be? What will the acid-test ratio be?

Answer rating: 100% (QA)

To find the current ratio divide current assets by current liabilities Current Ratio Current Assets ... View the full answer