Kramer Industries has cash of $39,000; net Accounts Receivable of $45,000; shortminusterm investments of $12,000 and inventory of $31,000. It also has $30,000 in current liabilities and $57,000 in longminusterm liabilities. What is the current ratio for Kramer Industries?

Current ratio is a financial measure that shows how many times the company's current assets can be used to meet its current obligations or liabilities.

It is a liquidity ratio and is given as

Current ratio = Current assets/ current liabilities

Current assets = $39,000 + $45,000 + $12,000 + $31,000

= $127,000

Hence, the current ratio for Kramer Industries

= $127,000/$30,000

= 4.23

Kramer Industries has cash of​ $39,000; net Accounts Receivable of​ $45,000; shortminusterm investments of​ $12,000 and inventory of​ $31,000. It also has​ $30,000 in current liabilities and​ $57,000 in longminusterm liabilities. What is the current ratio for Kramer​ Industries?

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Kramer Industries has cash of $39,000; net Accounts Receivable of $45,000; shortminusterm investments of $12,000 and inventory of $31,000. It also has $30,000 in current liabilities and $57,000 in longminusterm liabilities. What is the current ratio for Kramer Industries?