Question: In this problem, compute the acid-test ratio as follows: Current Assets Inventory/Current Liabilities Required Determine the cost of sales of a firm with the

In this problem, compute the acid-test ratio as follows:
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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