Quick ratio is equal to Quick Assets/Current Liabilities (2900/4590), which is 0.632.
Both the raw materials used in production and the finished commodities that are offered for sale are included in the definition of inventory. One of a company's most valuable assets is its inventory since it is one of the main sources of revenue creation and, consequently, a source of profits for the company's shareholders. There are three different categories of inventory: completed commodities, work-in-progress, and raw materials. On the balance sheet of a corporation, it is listed as a current asset.
EXPLANATION:
Current liabilities=4590
Add: Working capital=2170
Current assets=6760
Less: Inventory=3860
Quick assets =2900
Current assets divided by Current Liabilities is the current ratio.
6760/ 4590 = 1.47
Quick ratio is equal to Quick Assets/Current Liabilities (2900/4590), which is 0.632.
To know more about inventory, visit;
https://brainly.com/question/14184995
#SPJ4
