A firm's long term assets = $75,000, total assets = $200,000, inventory = $25,000 and current liabilities = $50,000.
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 = 1.0
Correct Answer:
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