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Home / Questions / Chen Company has current assets equal to $5000000 Of these $1000000 is cash $2250000 is ac...

Chen Company has current assets equal to $5000000 Of these $1000000 is cash $2250000 is accounts receivable $500000 is inventory and the remainder is marketable securities

Chen Company has current assets equal to $5,000,000. Of these, $1,000,000 is cash, $2,250,000 is accounts receivable, $500,000 is inventory, and the remainder is marketable securities. Current liabilities total $4,000,000.

Required:

1. Calculate the current ratio.

2. Calculate the quick ratio (acid-test ratio).

Jun 24 2020 View more View Less

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