Last year, Quayle Energy had sales of $200 million, and its inventory turnover ratio was 5.0....

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Last year, Quayle Energy had sales of $200 million, and its inventory turnover ratio was 5.0. The companys current assets to

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Answer 1

Answer #1

Inventory Turnover Ratio = Sales / Inventory

5 = $200,000,000 / Inventory

Inventory = $200,000,000 / 5 = $40,000,000

Current Ratio = Current Assets / Current Liabilities

1.2 = $100,000,000 / Current Liabilities

Current Liabilities = $100,000,000 / 1.2 = $83,333,333.33

Quick Ratio = [Current Assets - Inventory] / Current Liabilities

= [$100,000,000 - $40,000,000] / $83,333,333.33

= $60,000,000 / $83,333,333.33 = 0.72

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Answer 2

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Last year, Quayle Energy had sales of $200 million, and its inventory turnover ratio was 5.0....

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Last year, Quayle Energy had sales of $200 million, and its inventory turnover ratio was 5.0....

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