Answered

At Westonci.ca, we provide reliable answers to your questions from a community of experts. Start exploring today! Join our platform to connect with experts ready to provide precise answers to your questions in various areas. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform.

If a company has a quick ratio of 1.25 times, current assets of $25,000 and inventory of $5,000, the current liabilities balance is equal to sign and comma, as applicable) (round to the nearest dollar and include the dollar

Sagot :

abiolataiwo2015

Answer:

$16,000

Explanation:

Calculation to determine what the current liabilities balance is equal to

Using this formula

Quick Ratio = Current Assets - Inventory / Current Liabilities

Let plug in the formula

1.25 = ($25,000 - $5000) / Current Liabilities

1.25Current Liabilities = ($25,000 - $5000)

Current Liabilities = $20,000 / 1.25

Current Liabilities =$16,000

Therefore the current liabilities balance is equal to $16,000

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. We hope you found this helpful. Feel free to come back anytime for more accurate answers and updated information. Get the answers you need at Westonci.ca. Stay informed with our latest expert advice.