Quick ratio confusion - Financial perfomance
topcat
Registered Posts: 452
Hello 
So quick ratio is
Current assets - inventories
current liabilities
Although in a question for BPP they have either forgotten to take it off or my understanding is a bit off?
Current Assets = £435
Inventories = £105
Liabilities = £140
My answer = 2.34
£435 - £105
£140
Although the book answer is : 3.1
£435
£140
do you take inventory off or just not add it on?
Cheers!
So quick ratio is
Current assets - inventories
current liabilities
Although in a question for BPP they have either forgotten to take it off or my understanding is a bit off?
Current Assets = £435
Inventories = £105
Liabilities = £140
My answer = 2.34
£435 - £105
£140
Although the book answer is : 3.1
£435
£140
do you take inventory off or just not add it on?
Cheers!
0
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