Question

# HF inc. has the following ratios: -Current Ratio = 2.5 -Quick Ratio = 1.5 -Cash Ratio...

HF inc. has the following ratios:

-Current Ratio = 2.5
-Quick Ratio = 1.5
-Cash Ratio = .1

HF Inc. has TOTAL CURRENT ASSETS = \$1,200.

*Please fill in the blanks for HF Inc.
Inventory (in dollars) \$_________________________________

*Everything but Inventory and Cash
(in dollars) \$____________________

Thank you

Inventory in dollars : \$ 480.

Everything but Inventory and Cash in dollars : \$ 672

Current ratio = Total Current Assets / Total Current Liabilities = 2.5

Total current liabilities = \$ 1,200 / 2.5 = \$ 480

Cash ratio = Cash / Total Current Liabilities = 0.1

Cash = \$ 480 x 0.1 = \$ 48

Quick ratio = ( Cash + Accounts Receivable) / Total Current Liabilities = 1.5

Cash + Accounts Receivable = \$ 480 x 1.5 = \$ 720

Everything but inventory and cash  = \$ 720 - \$ 48 = \$ 672

Inventory = \$ 1,200 - \$ 720 = \$ 480

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