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Current Ratio / Working Capital

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BE7-9 The data are taken from the balance sheet of Ortiz., Inc The data are arranged in alphabetical order (in millions).

Accounts payable $ 584,600
Accounts receivable 1,674,400
Cash 110,600
Income taxes payable 25,900
Other current liabilities 608,500
Retained earnings 3,043,400

Compute Ortiz's (a) current ratio and (b)working capital.

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The solution explains how to calculate the current ratio and working capital

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(a) Current Ratio = Current Assets/Current Liabilities
Current Assets = Cash + Accounts ...

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