Kannan Carpets,Inc.has asked you to calculate the company's quick ratio for 2001.All you have is a partial balance sheet and some assumptions.Using the information provided,calculate Kannan's quick ratio for 2001.
Gross profit margin = 50%
Inventory turnover (COGS/Inv)= 5
2001 sales = $3,000
A)0.2
B)0.4
C)0.6
D)0.8

Question

Kannan Carpets,Inc.has asked you to calculate the company's quick ratio for 2001.All you have is a partial balance sheet and some assumptions.Using the information provided,calculate Kannan's quick ratio for 2001.
Gross profit margin = 50%
Inventory turnover (COGS/Inv)= 5
2001 sales = $3,000 
A)0.2 
B)0.4 
C)0.6 
D)0.8

Quizplus · Accepted Answer

The Answer of Kannan Carpets,Inc.has asked you to calculate the company's quick ratio for 2001.All you have is a partial balance sheet and some assumptions.Using the information provided,calculate Kannan's quick ratio for 2001.
Gross profit margin = 50%
Inventory turnover (COGS/Inv)= 5
2001 sales = $3,000 
A)0.2 
B)0.4 
C)0.6 
D)0.8