Question
XBM Bikes Ltd. has a current ratio of 1.5 and a quick (acid test) ratio of 1.25. If it purchases inventory on credit for $250,000,
XBM Bikes Ltd. has a current ratio of 1.5 and a quick (acid test) ratio of 1.25. If it purchases inventory on credit for $250,000, its quick ratio will drop to 1. What will its current ratio be if it purchases the inventory on credit?
a) 1.20
b) 1.40
c) 1.50
d) 1.75
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
