# 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.?

$Current\;Ratio=\frac{Current\;Assets}{Current\;Liabilities}\\* Current\;Assets=2.7 \times 46000 = 124200\\* Acid\;Test\;Ratio=\frac{(Current\;Assets-Merchandise\;Inventory) }{Current\; Liabilities}\\* \Rightarrow 2.2=\frac{124200-Merchandise\;Inventory}{46000} \\*\Rightarrow Merchandise\;inventory=124200-2.2\times46000=23000\\* So,\;the\;dollar\;amount\;of\;merchandise\;inventory\;is\;23000.$

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