Evergreen Corporation has a quick ratio of 2.8 to 1. It has current liabilities of $50,000 and noncurrent assets of $90,000. If Evergreen's current ratio is 3.5 to 1, what is the total value of its inventory and prepaid expenses?

Evergreen Corporation has a quick ratio of 2.8 to 1. It has current liabilities of $50,000 and noncurrent assets of $90,000. If Evergreen's current ratio is 3.5 to 1, what is the total value of its inventory and prepaid expenses?

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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Question

What is the total value of its inventory and prepaid expenses for this financial accounting question?

Evergreen Corporation has a quick ratio of 2.8 to 1. It has current
liabilities of $50,000 and noncurrent assets of $90,000. If Evergreen's
current ratio is 3.5 to 1, what is the total value of its inventory and
prepaid expenses?

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