Assuming that they have no current bills other than those that are listed, what is their current ratio?
Tim and Autumn Davis are trying to figure out their current financial health. They will pay off their car loan in three years, their gross household income is $5,700 per month, and they receive $95 per month in interest income from their investments. They have listed the following items from their most recent statements.
Savings account: $3,200
Checking account: $1,800
Credit card balance: $3,000
Car loan balance: $18,000
Car market value: $15,000
Furniture market value: $4,000
Stocks and bonds: $15,000
A) 0.79 times
B) $5,000/$3,000
C) 2 times
D) Not enough information available
Answer: B
You might also like to view...
According to Adrian North, the key to driving unwanted people away is ____________
a. unfamiliarity b. laws c. direct recourse d. indirect recourse e. segmentation
According to the economic theory of ________, a nation's prosperity relies on a more productive use of human capital and that by increasing the division of labor there would be greater productivity, the development of new machinery and of new
skills and trades among workers. a. mercantilism b. capitalism c. Chartism d. syndicalism