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