FNC 3100 Wilson's Hardware, Inc. Question 3 (10 points) Why is the Quick Ratio for Wilson's Hardware lower than the Current Ratio? Because the Quick Ratio excludes inventory from the numerator and the Current Ratio includes inventory in the numerator. The Quick Ratio is calculated using accrual accounting and the Current Ratio is calculated on a "cash basis." The Quick Ratio use the natural log and the Current Ratio is based on the time value of money