Answered: : The current ratio of a company is 5 1…

: The current ratio of a company is 5 1 and its acid-test ratio is 1 : 1. If the inventories and prepaid items amount to $1,000,000 what is the amount of current liabilities?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter7: Analysis Of Financial Statements

Section: Chapter Questions

Problem 7P: Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its...

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The current ratio of a company is 5 1 and its acid-test ratio is 1 : 1. If the inventories and prepaid items amount to $1,000,000 what is the
amount of current liabilities?

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