Answer:
Current ratio = Current assets
Current liabilities
2.6 = $11,400
Current liabilities
Current liabilities = $11,400
2.6
Current liabilities = $4,385
Quick ratio = Current assets - Inventory
Current liabilities
Quick ratio = $11,400 - $4,000
$4,385
Quick ratio = 1.69
Step-by-step explanation:
Current ratio is the ratio of current assets to current liabilities. The current ratio and current assets have been provided in the question with the exception of current liabilities. Thus, we will make current liabilities the subject of the formula.
Quick ratio is calculated as current assets minus inventory divided by current liabilities. Since the current liabilities have been calculated. Then, we will divide the difference between current assets and inventory by current liabilities so as to determine the quick ratio.