The table below is extracted from a company’s financial stat…
The table below is extracted from a company’s financial statements. Based on this information, compute the current ratio for the year 2025. Show your work. 12/31/2024 12/31/2025 Cash $10,000 $80,000 Accounts Receivable $10,000 $20,000 Inventory $10,000 $20,000 Land $10,000 $20,000 Accounts Payable $10,000 $20,000 Wages Payable $10,000 $20,000 Notes Payable (due in 9 month) $10,000 $20,000 Notes Payable (due in 18 month) $10,000 $20,000 (2 points) Current Ratio = Current Assets / Current Liabilities = (2 points) Is the likelihood HIGH or LOW (note one) that the firm will stay in business over the next year? HIGH or LOW