What is the current ratio if cash is $11,000, accounts receivable are $21,000, inventories are $32,000, accounts payable are $39,000, and accrued payroll is $12,000? The current ratio is: (Select the best choice below.) Solution Current assets = cash + account receivable + inventories = 11000 + 21000 + 32000 = 64000 current liabilities = account payable + accrued payroll = 39000 + 12000 = 51000 CURRENT RATIO = CURRENT ASSETS / CURRENT LIABILITIES = 64000 / 51000 = 1.25 ANSWER = b) 1.25.