Dartmouth Company Has a Quick Ratio of 2

question 85

Multiple Choice

Dartmouth Company has a quick ratio of 2.5 to 1.It has current liabilities of $40,000 and noncurrent assets of $70,000.If Dartmouth's current ratio is 3.1 to 1, its inventory and prepaid expenses must be:

• A) $12,400.
• B) $24,000.
• C) $30,000.
• D) $40,000.