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SDJ, Inc., has net working capital of $2,710, current liabilities of $3,950, and inventory of $3,420. What is the current rat

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Answer #1

Net working capital = $2,710

Current liabilities = $3,950

Net working capital = Current assets - Current liabilities

2,710 = Current assets - 3,950

Current assets = $6,660

Current ratio = Current assets / Current liabilities

= 6,660/3,950

= 1.69

Quick ratio = ( Current assets - Inventory)/Current liabilities

= (6,660-3,420)/3,950

= 0.82

Current Asset $6,660
Current ratio 1.69:1
Quick ratio 0.82:1

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