A firm has current liabilities of 250 a current ratio of 12


A firm has current liabilities of $250, a current ratio of 1.2, and quick ratio (or acid test) ratio of 0.80. Compute the level of inventory for this firm. [HINT: Use this definition: Inventory = (current assets) - (QR)(CL) where current assets = CA = (CR)(CL).]

A. $45
B. $100
C. $150
D. $200

 

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Finance Basics: A firm has current liabilities of 250 a current ratio of 12
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