June 2014 CSZ Co (b)

This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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February 26, 2020 at 9:33 am #563182
sarahsby
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Hi, why is inventory included in the target quick ratio of CSZ Co?
February 26, 2020 at 11:04 am #563197
John Moffat
Keymaster
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It isn’t!!

The answer correctly includes it in the calculation of the current ratio, but does not include it in the calculation of the quick ratio.
February 26, 2020 at 11:36 am #563200
sarahsby
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Thank you, sir. I mistook the quick ratio formula as TR-inventory.
February 27, 2020 at 3:35 pm #563325
John Moffat
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You are welcome 🙂
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