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A company has cash of $100,000, accounts receivable of $100,000, inventory of $100,000. They have no other current assets and they have a quick ratio
A company has cash of $100,000, accounts receivable of $100,000, inventory of $100,000. They have no other current assets and they have a quick ratio of 1.334. Which of the following is true?
A. Current liabilities are about $225,000
B. Long term liabilities are no more than $225,000, but the combination of short term and long term liabilities totals $225,000.
C. Current liabilities are about $150,000
D. The current ratio is 3.
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