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What are the firm current ratio and quick ratio

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A firm's long-term assets = $100,000, total assets = $400,000, inventory = $50,000 and current liabilities = $200,000. What are the firm's current ratio and quick ratio?

A) Current ratio = 0.5; quick ratio = 1.25

B) Current ratio = 1.0; quick ratio = 2.0

C) Current ratio = 1.5; quick ratio = 1.25

D) Current ratio = 2.5; quick ratio = 2.0

Reference no: EM132231232

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