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The quick ratio of a firm with current assets of $300,000, current liabilities of $100,000 and inventory of $100,000 is

User Laplasz
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Answer:

2:1

Step-by-step explanation:

A firm has a current assets of $300,000

A current liabilities of $100,000

An inventory of $100,000

The quick ratio of the firm can be calculated as follows

Quick ratio= Current assets-inventory/Current liabilities

= $300,000-$100,000/$100,000

= $200,000/$100,000

= 2:1

Hence the quick ratio of the firm is 2:1

User Yoyoma
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