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15 February, 10:42

SDJ, Inc., has net working capital of $2,135, current liabilities of $5,320, and inventory of $2,470. SDJ, Inc., has net working capital of $2,135, current liabilities of $5,320, and inventory of $2,470.

a. What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

b. What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

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  1. 15 February, 10:58
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    1)

    Net working capital = Current assets - current liabilities

    2,135 = Current assets - 5,320

    Current assets = 7,455

    Current ratio = Current assets / current liabilities

    Current ratio = 7,455 / 5,320

    Current ratio = 1.40

    2)

    Quick ratio = (Current assets - inventory) / current liabilities

    Quick ratio = (7,455 - 2,470) / 5,320

    Quick ratio = 0.94
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