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Before you start grouping the current assets and liabilities its important to put aside Retained earnings and capital stock, they are the owners equity. its important to group first before calculating the current ratio
accounts receivable-39000 =asset
taxes payable-29000= liability
accounts payable-21000 =liability
retained earnings-97000=owners equity
capital stock-50000 =owners equity
longterm notes payable-43000. Liabilities
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Sep 10th, 2015
Current Ratio = current assets / current liabilities
if a company's operations are more than one year then those which are treated in a fiscal year are Current liabilities. they include debts you owe that you expect to pay within the next 12 months. Liability is the general term reffering to total liabilities which is
liabilities=current liabilities +long term liabilities