The following information was drawn from the balance sheets of the Kansas and Montana companies: Kansas Montana Current assets $ 59,000 $ 78,000 Current liabilities 40,000 43,000 Required a. Compute the current ratio for each company. b. Which company has the greater likelihood of being able to pay its bills

a. Current Ratio = Current Assets/ Current liabilities

Kansas Current Ratio;

= 59,000 / 40,000

= 1.48

Montana Current Ratio

= 78,000 / 43,000

= 1.81

b. MONATANA is most likely.

The Current ratio is used to calculate the amount to which a company can pay off its current liabilities using its current assets. Montana has a higher Current ratio so they are most likely.

answer; manager working long hours; plz check i believe this is correct good luck;

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