7 SDJ Inc has net working capital of 2360 current liabilitie

7 SDJ, Inc., has net working capital of $2,360, current liabilities of $5,430, and inventory of $1,220 What is the current ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current ratio times What is the quick ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Quick ratio times

Solution

Req a: Current assets: Current liabilities: 5430 Add: Working capital 2360 Current assets: 7790 Current ratio: Current Assets/ Current liabilities 7790 / 5430 = 1.435 Req b: Quick assets: Current assets - Inventory 7790 - 1220 = 6570 Quick ratio: Quick assets / Current liabilities 6570 / 5430 = 1.21