Matie's Playground Equipment has current assets of \( \$ 128,400 \) and current liabilities of \( \$ 78,950 \). Find the current ratio. (Round to the nearest hundredth.) Select one: a. \( .78: 1 \) O. \( 1.63: 1 \) O c. \( 61: 1 \) d. \( .75: 1 \)

To find the current ratio, you divide current assets by current liabilities. Current ratio = Current Assets / Current Liabilities = \( 128,400 / 78,950 \approx 1.63 \). So the current ratio is approximately \( 1.63:1 \). The correct answer is \( 1.63:1 \). This means for every dollar of current liabilities, Matie's Playground Equipment has about $1.63 in current assets, which is a solid position! Keep an eye on your ratios, as they provide great insight into a company's short-term financial health.