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Sagot :
NWC = 1,410 = Current Assets – Current Liabilities = CA - 5,810
=> CA = 1,410 + 5810 = 7,220
Current Ratio = Current Assets/Current Liabilities
= 7,220/ 5,810 = 1.24
Quick Ratio = (Current Assets – Inventory) / Current Liabilities
= (7,220 – 1,315)/ 5,810 = 1.02
Current ratio is 1.67
Quick ratio = 0.88
In general, an appropriate current ratio is one that is comparable to the industry norm or just a little bit higher. The likelihood of distress or default may be increased by a current ratio that is lower than the industry average.
In a similar vein, if a company's current ratio is significantly higher than that of its peer group, it suggests that management might not be making the most use of its resources.
To learn more about Current Ratio here
https://brainly.com/question/1114476
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