In this problem, compute the acid-test ratio as follows: Current Assets Inventory/Current Liabilities Required Determine the
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Current Assets – Inventory/Current Liabilities
Required
Determine the cost of sales of a firm with the following financial data.
Current ratio ........... 2.5
Quick ratio or acid-test ....... 2.0
Current liabilities .......... $400,000
Inventory turnover ........ 3 times
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Related Book For
Financial Reporting and Analysis Using Financial Accounting Information
ISBN: 978-1439080603
12th Edition
Authors: Charles H Gibson
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