the total current assets of Gorgan company is equal to $540,000. This includes cash of $40,000, inventories of $250,000, and accounts receivables of $250,000. the current liabilities of the company is equal to $400,000. Calculate the companies quick ratio (round to 2 decimal places).A) 1.35B) 1.25C) 0.63D) 0.73

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Asked Dec 9, 2019
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the total current assets of Gorgan company is equal to $540,000. This includes cash of $40,000, inventories of $250,000, and accounts receivables of $250,000. the current liabilities of the company is equal to $400,000. Calculate the companies quick ratio (round to 2 decimal places).

A) 1.35

B) 1.25

C) 0.63

D) 0.73

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Hence, the correct option is (D). The quick ratio is 0.73. It is obtained ...

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Current Assets – Inventory Quick Ratio Current Liabilities $540,000 – $250,000 $400,000 $290,000 $400,000 = 0.725

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