0
by getting the difference between current assets and stock and then dividing the difference by current liabilities.
Wiki User
∙ 11y ago
Tariq Shaikh
Given the following information, calculate the inventory for Big Show Videos: Quick ratio = 1.2; Current assets = $12,000; Current ratio = 2.5
a. $5,660
b. $6,240
c. $7,200
d. $4,800
Add your answer:
Earn +20 pts
SDJ Inc has net working capital of 1410 current liabilities of 5810 and inventory of 1315 What is the current ratio what is the quick ratio?
I will not actually work the problem for you, however, I will give you the formula to find the current ratio and the quick ratio. Current Ratio = Current Assets / Current Liabilities The quick Ratio is Quick ratio = (current assets - inventories) / current liabilities Use the numbers you provided above to fill in the blanks and you should get the current ratios and quick ratios with no problem. / = divided by
What's the formula for quick asset ratio?
1. Quick assets ratio formula Quick asset ratio = quick assets / current liabilities
How can one calculate the working capital ratio?
One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.
Why is the quick ratio a more refined measure of liquidy than the current ratio?
Because inentories are generally the least liquid of the firms current assets
The acid test ratio does not include?
acid test / quick ration = quick assets / quick liablities quick assets = current assets - stock- prepaid expenses quick liablities = current liablities - bank overdraft
SDJ Inc has net working capital of 1410 current liabilities of 5810 and inventory of 1315 What is the current ratio what is the quick ratio?
I will not actually work the problem for you, however, I will give you the formula to find the current ratio and the quick ratio. Current Ratio = Current Assets / Current Liabilities The quick Ratio is Quick ratio = (current assets - inventories) / current liabilities Use the numbers you provided above to fill in the blanks and you should get the current ratios and quick ratios with no problem. / = divided by
What quick ratio indicates?
Quick ratio indicates company's liquidity and ability to meet its financial liabilities. Formula of quick ratio = (Current assets - Inventory)/Current Liabilities
Given the following information calculate the inventory for Big Show Videos Quick ratio equals 1.2 Current assets equals 12000?
Given the following information, calculate the inventory for Big Show Videos: Quick ratio = 1.2; Current assets = $12,000; Current ratio = 2.5 a) $4,800 b) $6,240 c) $7,200 d) $5,660 You can also get answer on onlinesolutionproviders com thanks
What's the formula for quick asset ratio?
1. Quick assets ratio formula Quick asset ratio = quick assets / current liabilities
quick ratio?
quick ratio analyzes whether a company can pay off its short-term obligations using its most liquid assets. the ideal quick ratio for companies is 1.50. quick ratio is calculated as follows:Quick ratio = Quick assets / Current liabilitiesQuick assets = Current assets - Inventory
What is the quick ratio?
The quick (or acid-test) ratio equals current assets minus inventory divided by current liabilities. This ratio is used to evaluate liquidity and is often used in conjunction with the current ratio. The difference between the current ratio and the quick ratio tells you how much inventory may be tied up in current assets. Relatively large inventories are often a sign of short-term trouble.
What does a quick ratio smaller than the current ratio reflect?
The quick ratio smaller than current ratio reflects that how much quick your organization is, in paying short-term liabilities. That is why inventories are deducted from current assets while calculating Quick ratio. Typically, a Quick ratio of 1:1 or higher is a good and indicates, a company does not have to rely on sale of inventory to pay the short-term bills, while as current ratio of 2:1 is considered good in order to provide a shield to the inventory.
Does a quick ratio much smaller than the current ration reflects a smaller portion of currents assets is in inventory?
No. A quick ratio much smaller than the current ratio reflects a large portion of current assets is in inventory.
A quick ratio much smaller than the current ratio reflects?
a large portion of current assets is in inventory
Why is the quick ratio a more appropriate measure of liquidity than the current ratio for a large-airplane manufacturer?
The quick ratio is more appropriate than the current ratio because it only factors in the assets that a business, like a large airplane manufacturer, can easily turn into cash. The quick ratio does not include inventory or land assets so is typically lower than the current ratio.
How can one calculate the working capital ratio?
One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.
How do you calculate ratio?
current ratio = current assets / current liablities A ratio (in trig) is simply the division of two lengths. A tangent (in trig) is the ratio of the opposite and adjacent legs.
