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guthrie corp has current liabilites of 270,000 a quick ratio of 1.1 inventory turnover of 4.2...

guthrie corp has current liabilites of 270,000 a quick ratio of 1.1 inventory turnover of 4.2 and current ratio of 2.3 what is the cost of good sold

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Answer #1
Current ratio = Current assets / Current liabilities
2.3 = Current assets / 270000
Current assets = 270000 * 2.3 =621000
Quick ratio = Quick assets / Current liabilities
1.1 = Quick assets / 270000
Quick assets = 270000 * 1.1 =297000
Quick assets = Current assets - Inventory
297000 = 621000 - Inventory
Inventory = 621000 - 297000 =324000
Inventory turnover = Cost of goods sold / Inventory
4.2 = Cost of goods sold / 324000
Cost of goods sold = 324000 * 4.2 =1360800
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