Robertson Robotics has a current ratio of 2.0 and its quick ratio is 1.6. The company has $5-million in current liabilities. The company's inventory turnover ratio is 5 . The company wants to improve its inventory turnover ratio so that it is equal to the industry average of 6.0, without changing its sales. Assume that the company is able to do this, and that the company uses the freed up cash from the decline in inventory to reduce its accounts payable. 

What would be the company's quick ratio after this change?

Answer rating: 100% (QA)

To calculate the companys quick ratio after the change we need to determine the new level of inventory and accounts payable The current quick ratio is ... View the full answer