Greenfields Pty Ltd has a quick asset ratio of 2 to 1 and current liabilities of $22 000.If Greenfields Pty Ltd has $10 000 of inventory,the total current assets is:
A)$44 000
B)$54 000
C)$64 000
D)$32 000

Question

Quizplus · Accepted Answer

Quick asset ratio = (Current assets - Inventory)/Current liabilities
2 = (Current assets - $10 000)/$22 000
2 x $22 000 = Current assets - $10 000
$44 000 = Current assets - $10 000
Current assets = $54 000

Greenfields Pty Ltd Has a Quick Asset Ratio of 2