question 3 out of 4 mindy and lou had liquid assets of $10,000 and current debts of $50,000. what is their…

question 3 out of 4 mindy and lou had liquid assets of $10,000 and current debts of $50,000. what is their liquidity ratio? type your answer here submit 1 / 4 questions correct start over

question 3 out of 4 mindy and lou had liquid assets of $10,000 and current debts of $50,000. what is their liquidity ratio? type your answer here submit 1 / 4 questions correct start over

Answer

Explanation:

Step1: Recall liquidity - ratio formula

Liquidity ratio = $\frac{\text{Liquid Assets}}{\text{Current Debts}}$

Step2: Substitute given values

Liquidity ratio = $\frac{10000}{50000}$

Step3: Simplify the fraction

Liquidity ratio = 0.2

Answer:

0.2