Selected data for Austin Company follow:

Current assets

$50,000

Current liabilities

$40,000

Long term assets

70,000

Long term liabilities

35,000

Total revenues

30,000

Total expenses

20,000

Based on these facts, what are Austin’s current ratio and debt ratio?

Current ratio Debt ratio

a. 2 to 1 0.5 to 1

b. .83 to 1 0.5 to 1

c. 1.25 to 1 0.625 to 1

d. 2 to 1 0.633 to 1