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The Current Ratio for a Company with Current Assets of $70,000,quick

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The current ratio for a company with current assets of $70,000,quick assets of $30,000,total assets of $150,000,current liabilities of $50,000,and net sales of $80,000 would be:

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Definitions:

Markup

The supplementary amount factored into the base price of goods to address fixed costs and earnings, influencing their final selling point.

Selling Price

The price a consumer disburses to obtain a product or service from a merchant.

Absorption Costing

An accounting method that includes all manufacturing costs—both variable and fixed—in the cost of goods sold, for product pricing.

Markup

The difference between the cost of a good or service and its selling price, expressed as a percentage of cost.

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