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What is the company’s current ratio at January 29, 2017? 0.80 1.25 0.41 1.11 What does the company’s current ratio in requirement 3 indicate? The company has more than one dollar of current assets for every dollar of current liabilities due in the next year. The company has less than one dollar of current assets for every dollar of current liabilities due in the next year. Less than half of the company’s assets are current. Less than half of the company’s liabilities are current.

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Answer:

  1. 1.25
  2. The company has more than one dollar of current assets for every dollar of current liabilities due in the next year.

Explanation:

1. Current Ratio at January 29,2017;

= Current Assets/ Current liabilities

= 17,724/14,133

= 1.25

2. The Current ratio checks if the company has enough current assets to enable it cover its current liabilities in the next year so if the current ration is 1.25, the company has more than one dollar of current assets for every dollar of current liabilities due in the next year.

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