(Answered) Question current ratio and quick acid-test ratio smith

Accounting

Question: Current Ratio and Quick (Acid-Test) Ratio Smith Company has current assets equal to $250,000. Of these, $135,000 is cash, $55,000 is accounts receivable, and the remainder is inventories. Current liabilities total $200,000.

Required: 1. Compute the current ratio.

2. Compute the quick (acid-test) ratio.

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