Laurel Electronics has a quick ratio of 1.40, currentliabilities of $4,055,163, and inventories of $8,586,000....

Laurel Electronics has a quick ratio of 1.40, current liabilities of $4,055,163, and inventories of $8,586,000. What is the firm’s current ratio? (Round answer to 2 decimal places, e.g. 12.25.)

The firm’s current ratio is

.

Expert Solution

Quick ratio=(quick assets / current liabilities)

Quick assets=(1.4*4055163)= 5677228.20

Current asset= (quick assets + inventory)

=(5677228.2+8586000)=14263228.20

Current ratio=(current asset / current liability)

= (14263228.2/4055163)=3.517

Current ratio is 3.517

jeff jeffy answered 2 years ago

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