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Sagot :
Quick ratio is equal to Quick Assets/Current Liabilities (2900/4590), which is 0.632.
What is inventory?
Both the raw materials used in production and the finished commodities that are offered for sale are included in the definition of inventory. One of a company's most valuable assets is its inventory since it is one of the main sources of revenue creation and, consequently, a source of profits for the company's shareholders. There are three different categories of inventory: completed commodities, work-in-progress, and raw materials. On the balance sheet of a corporation, it is listed as a current asset.
EXPLANATION:
Current liabilities=4590
Add: Working capital=2170
Current assets=6760
Less: Inventory=3860
Quick assets =2900
Current assets divided by Current Liabilities is the current ratio.
6760/ 4590 = 1.47
Quick ratio is equal to Quick Assets/Current Liabilities (2900/4590), which is 0.632.
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