Determine inventories of a firm, Finance Basics

A firm's current ratio is 1.5, and its quick ratio is 1.0. If its current liabilities are $10,000, what are its inventories?  

a

Current Ratio

   

1.5

 

(Current Assets/Current Liabilties)

 

b

Quick Ratio

   

1.0

c

Current Liabilities

   

 mce_markernbsp;                     10,000.00

d

Current Assets

   

 mce_markernbsp;                     15,000.00

 

(a x c)

       

e

As quick ratio,

     
 

(Current Assets - Stock)/Current Liabilties) = 1.0

 

($15,000 - Stock)/$10,000 = 1

   
 

$15000 - Stock = $10,000

   
 

Stock = $5,000

     

 

 

Posted Date: 7/23/2012 2:03:25 AM | Location : United States







Related Discussions:- Determine inventories of a firm, Assignment Help, Ask Question on Determine inventories of a firm, Get Answer, Expert's Help, Determine inventories of a firm Discussions

Write discussion on Determine inventories of a firm
Your posts are moderated
Related Questions
From the above case shareholders are very worried that apple is having too much cash,discuss six reasons why shareholders are so worried

How to compute the IRR of data

Commercial Bank for Short Term Loans Purpose Why Commercial Banks Prefer To Lend Short Term Loans a) Long-term forecasts are not only difficult although also vague as unc

whom do you think rajendra should eat with and why

why borrow from a country with a high interest rate instead of a country with a low interest rate

The Audiology Department at Randall Clinic offers many services to the clinic''s patients. The three most common , along with cost and utilization data, are as follows: Service Var

Ask questioAustralian’s Speleological App Projectn #Minimum 100 words accepted#

What does reserve requirements and the discount rate? What the Fed Does: Reserve needs and the Discount Rate The federal funds market Financial market which allows banks

Evaluation of Suppliers or Vendors  Vendor selection or evaluation is usually based on comparison along dimensions Inventory management that are thought to be important. It

Example of Earnings Yield Valuation Estimated maintainable earnings are £240,000 per annum; rate of return required is 25 percent. Calculate the value of the business. V