Answer:
New Current ratio will be 1.82
Explanation:
Current assets = $1,490,000
Current liabilities = $820,000
New stock issued = $175000
Current Ratio = Current Assets / Current Liabilities
Current Ratio = $1,490,000 / $820,000
Current Ratio = 1.8171 = 1.82
New Stock issue will not effect the current ratio as current ratio only deals the current assets and current liabilities ( as given in formula above ). Any equity transaction will not effect this ratio.
