   Chapter 15.III, Problem 5RE ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# Calculate the amount of working capital and the current ratio for the following companies. Round ratios to the nearest hundredth. Current Current Working Current Company Assets Liabilities Capital Ratio 5. Shutterbug Cameras $1,224,500$845,430 ______ ________

To determine

To calculate: The amount of working capital and the current ratio of the company Shutterbug Cameras which has current assets of $1,224,500 and current liabilities of$845,430. Round the ratios to the nearest hundredth.

Explanation

Given Information:

The company Shutterbug Cameras has current assets of $1,224,500 and current liabilities$845,430.

Formula used:

The formula for the working capital is,

Working capital=Current AssetsCurrent liabilities

The formula for the current ratio is,

Current ratio=Current assetsCurrent liabilities

Calculation:

Consider that the company Shutterbug Cameras has current assets of $1,224,500 and current liabilities of$845,430.

Compute the working capital by substituting $1,224,500 for current assets, and$845,430 for current liabilities in the formula, “Working capital=Current AssetsCurrent liabilities

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