A firm's long term assets = $150,000,total assets = $400,000,inventory = $50,000,and current liabilities = $100,000.Calculate the current ratio and quick ratio.
A) Current ratio = 0.5; Quick ratio = 1.5
B) Current ratio = 1.0; Quick ratio = 2.0
C) Current ratio = 1.5; Quick ratio = 2.0
D) Current ratio = 2.5; Quick ratio = 2.0
Correct Answer:
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