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Dartmouth Company Has a Quick Ratio of 2

Question 81

Multiple Choice

Dartmouth Company has a quick ratio of 2.5 to 1.It has current liabilities of $40,000 and noncurrent assets of $70,000.If Dartmouth's current ratio is 3.1 to 1, its inventory and prepaid expenses must be:


A) $12,400.
B) $24,000.
C) $30,000.
D) $40,000.

Correct Answer:

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