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    long9974's Avatar
    long9974 Posts: 2, Reputation: 1
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    #1

    Jul 1, 2007, 06:13 PM
    Financial statement Analysis
    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's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
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    #2

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

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