I need to compute current assets and current liabilities using the current ratio of 2 to 1, but I am unsure of how to use this type of ratio.
Formula for current ratio: current assets / current liabilities
I know how to work out the problem if the ratio is a whole number or a decimal, but I am unsure of how to proceed when the ratio is: 2 to 1.
If anyone could please point me in the right direction, I would really appreciate it.
Thank you