Morgan Sports Equipment Company has accounts payable of $1,221,669, cash of $677,423, inventory of $2,312,478, accounts receivable

Question:

Morgan Sports Equipment Company has accounts payable of $1,221,669, cash of $677,423, inventory of $2,312,478, accounts receivable of $845,113, and net working capital of $2,297,945. What are the company’s current ratio and quick ratio?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...