AAA's inventory turnover ratio is 13.27 based on sales of $14,200,000. The firm's current ratio equals 3.97 with current liabilities equal to $860,000. What is the firm's quick ratio? (Round your answer to two decimal places.) 3.97 O 2.73 3.45 1.55 4.90

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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AAA's inventory turnover ratio is 13.27 based on sales of $14,200,000. The firm's
current ratio equals 3.97 with current liabilities equal to $860,000. What is the firm's
quick ratio? (Round your answer to two decimal places.)
O 3.97
O 2.73
3.45
1.55
4.90
Transcribed Image Text:AAA's inventory turnover ratio is 13.27 based on sales of $14,200,000. The firm's current ratio equals 3.97 with current liabilities equal to $860,000. What is the firm's quick ratio? (Round your answer to two decimal places.) O 3.97 O 2.73 3.45 1.55 4.90
Expert Solution
Step 1

The formulae to be used in the question are

Inventory turnover = SalesInventoryCurrent ratio = Current assetsCurrent liabilitiesQuck ratio = Current assets-InventoryCurrent liabilities

 

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