The current ratio is calculated by dividing current assets by current liabilities.
McGraw Hill Connect Financial Accounting Answers Chapter 4 Homework: A Comprehensive Guide** The current ratio is calculated by dividing current
\[ egin{array}{l} ext{Current Ratio} = rac{ ext{Current Assets}}{ ext{Current Liabilities}} \ ext{Current Ratio} = rac{$50,000}{$20,000} \ ext{Current Ratio} = 2.5 nd{array} \] The current ratio is calculated by dividing current