Determine the amount of current liabilities?

Super Savers Department Store reported a quick ratio of 0.6. A review of its balance sheet revealed the following information:

Quick assets …………. $120,000

Current assets ………… 750,000

Noncurrent assets …….. 450,000

Noncurrent liabilities …. 300,000

Determine the amount of current liabilities reported in the balance sheet.

2 Answers

  • 9 years ago
    Favorite Answer

    The formula for quick ratio is: Quick Assets (Current Assets - Inventory Assets)/Current Liabilities

    Therefore, 0.6=120 000/Current Liabilities

    If we rearrange the formula we obtain: Current Liabilities= 120 000/0.6

    Current Liabilities = $200 000

  • Anonymous
    6 years ago

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