Regal Manufacturing has a quick ratio of 2.8 to 1. It has current liabilities of $50,000 and noncurrent assets of $80,000. If Regal's current ratio is 3.5 to 1, its inventory and prepaid expenses must be: a. $22,500 b. $35,000 c. $30,000 d. $25,000

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 15MCQ: Hummel Inc. has $30,000 in current assets and $15,000 in current liabilities. What is Hummels...
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Regal Manufacturing has a quick ratio of 2.8 to 1. It has current
liabilities of $50,000 and noncurrent assets of $80,000. If Regal's
current ratio is 3.5 to 1, its inventory and prepaid expenses must
be:
a. $22,500
b. $35,000
c. $30,000
d. $25,000
Transcribed Image Text:Regal Manufacturing has a quick ratio of 2.8 to 1. It has current liabilities of $50,000 and noncurrent assets of $80,000. If Regal's current ratio is 3.5 to 1, its inventory and prepaid expenses must be: a. $22,500 b. $35,000 c. $30,000 d. $25,000
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