RBW Corp. has cash of $48,000; short-term notes payable of $35,000, ac

RBW Corp. has cash of $48,000; short-term notes payable of $35,000, accounts receivable of
$100,000; accounts payable of $120,000; inventories of $200,000; and accruals of $90,000. What is
RBW’s current ratio?

A) 1.57 B) 0.64 C) 2.71 D) 1.42

ANSWER

D