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SDJ, Inc. has a net working capital of $1,910, current liabiliteis of $5,610, and inventory...

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Question

Accounting

SDJ, Inc. has a net working capital of $1,910, current liabiliteis of $5,610, and inventory of $1,265.

What is the current ratio?

My Solution:

NWC = CA - CL

CA = CL + NWC or 5610 + 1910 = 7,520

CR = CA / CL

CR = 7,520 / 5,610 = 1.340 or 1.34

I checked my answer and it says it is incorrect. what am I missing?

Answer & Explanation Solved by verified expert
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