In: Finance
SDJ, Inc., has net working capital of $1,960, current liabilities of $5,590, and inventory of $1,260.
A. what is the current ratio?
B. what is the quick ratio?
Current assets= Net Working capital + Current Liabilities
Current Ratio= Current Assets/Current Liabilities
Quick Ratio= (Current assets-Inventory)/ Current Liabilities
Given,
Net Working capital = $1,960
Current Liabilities = $5,590
Inventory= $1,260
Plugging the values,
Current Ratio= ($1,960 + $5,590)/$5,590 = 1.350626
Quick Ratio= ($1,960 + $5,590-$1,260)/$5,590 = 1.1252236