Question: Quick Ratio; 1 . 5 and Current Ratio: 2 . Total current asset is $ 8 1 0 , 0 0 0 . What is

Quick Ratio; 1.5 and Current Ratio: 2. Total current asset is $810,000. What is inventory level? Andyen of Fremiaal Sutement -roblem solung Whect is de et to asseet ratio?
(1). JM and Deht Ratio
TAT: 1.2,2A:4%,RE=7%
Findiy PM? linkitier to asset whto?
DentTA=50%*LiabilitienTA=10.5*(42.86%)=21.43%
RoA =PM*T*T
4%=PM*1.2 solijg PM=4%1.2=3.33%
(Assing sopo of liakilitiec in the formu y Jebt)
ROE=ubrace(PMTA ubrace)ROAT*EM
7%=4%*EM.=> Soljj ?bar(E)M=TAC(?bar(E))=1.75
1EM=1TA=CETA=11.75=57.10%
LiabilitierTA+CETA=100%LiabilitierTA=42.86%
(2) Current and Quick Ratio
A firm har CA.43 mition. currentratiol 1.5
What sub Cilith ihe ssit orel of inventory?
Okay? So we work a little bit, complicated type
the question. [ referred to liability to asset ratio]
$550,000
$650,000
$405,000
$202,500
 Quick Ratio; 1.5 and Current Ratio: 2. Total current asset is

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