Unformatted text preview: Current Ratio - The quick ratio removes Inventory (and other
less liquid assets such as Prepaid Expenses)
from the numerator of the calculation - Chan Audio's quick ratio is $532,600 - $250,200 = 1.2
$235,300 - The current ratio should be greater than 2.0 - The quick ratio should be greater than 1.0 ...
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- Fall '07
- Financial Accounting