Question

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) $____________________

PLEASE SHOW WORK TO EXPLAIN

Thank you

Answer 1

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