The following is an extract of Webee Ltd.’s balance sheet. What is its current ratio?

Particulars $
Cash 5,000
Accounts Receivable 5,000
Inventory 10,000
Prepayments 4,000
Long term Assets 100,000
Accounts Payable 2,000
Notes payable within 10 months 2,000
Wages Payable 4,000
Long term Liabilities 16,000
Stockholder's Equity 100,000

a. 2:1
b. 3:1
c. 6:1
d. 4:1

Q&A Education