Determine inventories of a firm, Finance Basics

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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

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