Dooley Company had current assets of $1,552, current liabilities of $1,413, total assets of $1,742, and longminusterm liabilities of $1,210. If Dooley acquires inventory by executing a sixminusmonth note for $1,550, what is the new current ratio? (Round your final answer to two decimal places.)

new current ratio = 1.09

Explanation:

given data

current assets = $1,552

current liabilities = $1,413

total assets  = $1,742

liabilities = $1,210

solution

we get here new current ratio that is express as

new current ratio = current assets ÷ current liability   1

put here value and we will get

new current ratio = 1,552 ÷ 1,413

new current ratio = 1.09

answer; is usually (less than) the socially optimal level of consumption;