Calculate the current ratio. (Round answer to 2 decimal places, e.g. 52.75.)Current Ratio

To calculate the current ratio, you need to divide the total current assets by the total current liabilities. The formula for the current ratio is:

Current Ratio = Total Current Assets / Total Current Liabilities

1. Gather the information:

   • Determine the total current assets, which include cash, accounts receivable, inventory, and any other assets that can be easily converted into cash within one year.
   • Determine the total current liabilities, which include accounts payable, short-term loans, and any other liabilities that are due within one year.

2. Calculate the current ratio:

   • Divide the total current assets by the total current liabilities.
   • Round the answer to 2 decimal places, if necessary.

For example, if the total current assets are $100,000 and the total current liabilities are$50,000, the calculation would be:

Current Ratio = $100,000 /$50,000 = 2.00

Therefore, the current ratio in this example is 2.00.