The current ratio of company x is 3.0 times. Company x has working capital of $20,000. Total current assets for company x are $30,000.
The current ratio calculates the ability of business to meet its short-term obligations that are due in a year.
To calculate the total current assets:
Current Ratio = Current Assets / Current Liabilities
3 = Current Assets / Current Liabilities
Current Liabilities = (1/3) x Current Assets
Now,
Working Capital = Current Assets - Current Liabilities
$20,000 = Current Assets - (1/3) x Current Assets
$20,000 = Current Assets x (1 - (1/3))
$20,000 = Current Assets x (2/3)
Current Assets = $20,000 x (3/2)
Current Assets = $30,000
So Total current assets for company x are 3,0000.
if you need to learn more about current assets, click here
https://brainly.in/question/10270209
#SPJ4
