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long9974
Jul 1, 2007, 06:13 PM
I have a question. A company has cash $75,000; temporary investments $20,000: net receivables $600,000: and merchandise inventory $50,000. Current liabilities are $40,000. The quick or acid-test ratio is ________. If you could help me on my question I will really appreciated. Thank you

CaptainForest
Jul 1, 2007, 08:32 PM
(75,000 + 20,000 + 600,000) / 40,000 = 17.375 : 1