Alice Co Has a Current Ratio of 2

question 108

Short Answer

Alice Co. has a current ratio of 2.7. The acid test ratio is 2.2. The current liabilities of Alice Co. are $46,000. Could you calculate the dollar amount of merchandise inventory?

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Definitions:

Payables Deferral Period

The amount of time a company takes to pay off its suppliers after receiving goods or services, affecting its cash flow.

Daily Sales

The total revenue or amount of goods and services sold by a business within a single day.

Free Cash Flow

The amount of cash generated by a business after accounting for capital expenditures needed to maintain or expand the asset base.

EVA

Economic Value Added is a measure of a company's financial performance based on the residual wealth calculated by deducting its cost of capital from its operating profit.