Answer this financial accounting problem? The current ratio of a company is5:1, and its acid-test ratio is 2:1. Ifthe inventories and prepaid itemsamount to $450,000, what is theamount of current liabilities? Answerthis financial accounting problem.

Explanation of Current Ratio:The current ratio is a financial metric that measures a company's…

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

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 3MC: The following is selected financial data from Block Industries: How much does Block Industries have...

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The current ratio of a company is 5:1, and its acid-test ratio is 2:1. If the inventories and prepaid items amount to $450,000, what is the amount of current liabilities? Answer this financial accounting problem.