Accounting · Working Capital Analysis
An entity is reviewing its working capital position at the year-end. The following draft information is available: Current Ratio: 2.1 : 1 Quick Ratio (Acid Test): 0.8 : 1 Total Current Liabilities: $450,000 The entity then discovers that a batch of inventory with a cost of $25,000 is obsolete and has a net realisable value of nil. Additionally, a credit customer who owed 15,000 has been declared bankrupt, and the debt must be written off. What is the revised Quick Ratio (to two decimal places)?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 10.77 : 1✓
- 20.83 : 1
- 30.73 : 1
- 40.80 : 1
Correct answer
0.77 : 1
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