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  • Alice company has a current ratio of 2.7. the acid test ratio is 2.2. the current liabilities od alice company are $46,000. calculate the dollar amount of merchandise inventory.?

Alice company has a current ratio of 2.7. the acid test ratio is 2.2. the current liabilities od alice company are $46,000. calculate the dollar amount of merchandise inventory.?

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Current;Ratio=fracCurrent;AssetsCurrent;Liabilities\* Current;Assets=2.7 imes 46000 = 124200\* Acid;Test;Ratio=frac(Current;Assets-Merchandise;Inventory) Current; Liabilities\* Rightarrow 2.2=frac124200-Merchandise;Inventory46000 \*Rightarrow Merchandise;inventory=124200-2.2 imes46000=23000\* So,;the;dollar;amount;of;merchandise;inventory;is;23000.

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Deependra Verma

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