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ABC Company has the following balances as of 12/31/2022: Cash 5,000 A/R 15,000 Inventory 8,500 Equipment 25,000 Accounts Payable 18,000 Common Stock 35,500 Sales 50,000

ABC Company has the following balances as of 12/31/2022:

Cash 5,000

A/R 15,000

Inventory 8,500

Equipment 25,000

Accounts Payable 18,000

Common Stock 35,500

Sales 50,000

Calculate the quick (acid-test) ratio:

formula is

Quick (Acid Test) Ratio =Current Assets - Inventory / Current Liabilities

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