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GeekInterview.com > Interview Questions > Accounting > Fixed Assets
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Question: Financial Management
Answer: A company has current assets of $3 million. The company's current ratio is 1.5 and it's quick ratio is 1.0. What amount of current liabilities does the company have? What amount of the company's current assets is represented by inventory? |
| October 10, 2008 14:43:54 |
#1 |
| joe fagan |
Member Since: October 2008 Total Comments: 1 |
RE: Financial Management
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A company has current assets of $3 million. The company's current ratio is 1.5 and it's quick ratio is 1.0. What amount of current liabilities does the company have? What amount of the company's current assets is represented by inventory?
Current assets/Current Liabilities =1.5
(Current assets minus inventory)/Current Liabilities =1
Thus
Current Liabilities = 2 m
Inventory = 1 m
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