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The quick (or acid-test) ratio equals current assets minus inventory divided by current liabilities. This ratio is used to evaluate liquidity and is often used in conjunction with the current ratio. The difference between the current ratio and the quick ratio tells you how much inventory may be tied up in current assets. Relatively large inventories are often a sign of short-term trouble.
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Given the following information calculate the inventory for Big Show Videos Quick ratio equals 1.2 Current assets equals 12000?
Given the following information, calculate the inventory for Big Show Videos: Quick ratio = 1.2; Current assets = $12,000; Current ratio = 2.5 a) $4,800 b) $6,240 c) $7,200 d) $5,660 You can also get answer on onlinesolutionproviders com thanks
What is the meaning of a quick ratio greater than 1.0 and less than 1.0?
A quick ratio is something used in financial accounting. It is equal to your quick assets (cash and accounts receivable) divided by your current liabilities. If it is greater than 1.0 then your financial statements are looking good because you have more assets than liabilities and are therefore (hopefully) making revenue. If it is less than 1.0 than your liabilities outweigh your assets and your business could be headed for failure.
How do you calculate liquidity ratio?
You have to calculate the Quick ratio and the Current RatioQuick ratio: (cash+accounts receivables+short-term investments)/current liabilitiesCurrent ratio: Current Assets/Current liabilitiesWhoever submitted this did not answer the question fully. I don't know the answer but I see nothing here that says "Liquidity ratio =" or means the same thing. I have no idea what to do with quick ratio and current ratio....================================================================What Does Liquidity Ratios Mean?A class of financial metrics that is used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts.Common liquidity ratios include the current ratio, the quick ratio and the operating cash flow ratio. Different analysts consider different assets to be relevant in calculating liquidity. Some analysts will calculate only the sum of cash and equivalents divided by current liabilities because they feel that they are the most liquid assets, and would be the most likely to be used to cover short-term debts in an emergency.A company's ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment. Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be able to continue as a going concern.From Investopedia.
Why do you need Ratio?
so that i can help us through simple life skill's that we have and when we see something that could be work out in a quick way of doing we won't have to use long multiplication's
Is -41 a rational number?
1). Quick check:Any number that you can completely write with digits is a rational number.So yes, -41 is rational.2). Formal mathematical analysis:Any number that can be written as the ratio of two integers is rational.-41 is the ratio of -41 and 1.So yes, -41 is rational.
