Suppose a company has a current ratio of 2.5 times and a quick ratio of 1.5 times.

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Suppose a company has a current ratio of 2.5 times and a quick ratio of 1.5 times. If the company’s current liabilities are h100 million, the amount of inventory is closest to:

A. h50 million.

B. h100 million.

C. h150 million.

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Corporate Finance A Practical Approach

ISBN: 9781118217290

2nd Edition

Authors: Michelle R Clayman, Martin S Fridson, George H Troughton, Matthew Scanlan

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Question Posted: Mar 30, 2024 01:01 AM

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Suppose a company has a current ratio of 2.5 times and a quick ratio of 1.5 times.

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The current ratio is calculated as textCurrent Ratio fractextCurrent AssetstextCurrent Liabilities G...View the full answer

Corporate Finance A Practical Approach

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