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The quick ratio, Q, is calculated using the formula Q= CA-I-P/ CL, where CA is the value of the company’s current assets, I is inventory, P is prepaid expenses, and CL is current liabilities. Rearrange the formula for current assets

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sqdancefan

Answer:

  CA = Q·CL +I +P

Step-by-step explanation:

Multiply by the denominator, then add the opposite of all terms that are not CA.

  [tex]Q=\dfrac{CA-I-P}{CL}\\\\Q\cdot CL=CA-I-P\\\\Q\cdot CL+I+P=CA\\\\\boxed{CA=Q\cdot CL+I+P}[/tex]

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