Based on these facts, what are Austin’s current ratio and debt ratio? 1 answer below »

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

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