Current Ratio Balancer
Raise working capital and liquidity to a target current ratio using an owner cash contribution.
Accounting puzzle
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Instructions, device progress and accessibility
Choose Easy, Normal, or Hard and select Practice or UTC Daily. Solve all accounting fields, then Check Answer. Hint and Undo mark a round as assisted. Progress stays on this device. All cases are fictional.
Local progress is checked when play begins.
How to play Current Ratio Balancer
Raise working capital and liquidity to a target current ratio using an owner cash contribution. Choose Easy, Normal or Hard, enter the numeric answers and use Check Answer. Practice and daily challenges are free.
Worked accounting example
A firm holds current assets of $12,000 and liabilities of $8,000, a 1.50 current ratio. To reach 2.00 with equity-funded cash, add $4,000 cash: assets rise to $16,000 while liabilities remain $8,000.
Accounting formulas and common mistakes
When an owner adds cash as equity, current assets rise and current liabilities remain unchanged. Required cash = target current ratio × current liabilities − original current assets. Borrowing instead would alter both assets and liabilities.
All fictional amounts use US dollars for illustration only. Exercises are educational, not business, tax or investment advice.
Frequently asked questions
Can equity financing improve the current ratio?
Yes. New equity-funded cash increases current assets without increasing current liabilities.
Is cash borrowed from a bank treated the same way?
No. A current bank loan also increases current liabilities, changing the equation.