Question

requirement 1a. compute the current ratios for 2025 and 2024. begin by selecting the formula to compute the current ratio. current ratio = average merchandise inventory ÷ net sales revenue (cash + cash equivalents) ÷ total current liabilities (cash + accounts receivable, net) ÷ total current liabilities cost of goods sold ÷ average merchandise inventory gross profit ÷ net sales revenue market price per share of common stock ÷ earnings per share (net income + income tax expense + interest expense) ÷ interest expense (net income − preferred dividends) ÷ average common stockholders equity (net income − preferred dividends) ÷ weighted average number of common shares outstanding total current assets ÷ total current liabilities total equity ÷ total liabilities total liabilities ÷ total equity

Explanation:

The current ratio is a financial ratio that measures a company's ability to pay its short - term obligations. The formula for the current ratio is defined as total current assets divided by total current liabilities. Among the given options, the option "Total current assets ÷ Total current liabilities" matches this definition.

Answer:

Total current assets ÷ Total current liabilities