Act ii costumes currently has $120,000 in cash, $340,000 in inventory, and $20,000 in accounts receivable. the company also has $20,000 in accounts payable, and $20,000 in other current liabilities. what is its quick ratio?

Quick ratio = Current assets - Inventory/Current liabilities

= $480,000 - $340,000/$40,000

= 3.5

Current assets = $120,000 + $340,000 + $20,000 = $480,000

Current liabilities = $20,000 + $20,000 = $40,000

Explanation:

Explanation: Quick ratio is the ratio of liquid assets to current liabilities. Liquid assets are current assets less inventory. Liquid assets amounted to $140,000 while current liabilities are $40,000. The division of liquid assets by current liabilities gives quick ratio.                                                                                                                      

the answer is true

for e2020 ; -;

answercountries with higher real income per capita tend to have higher levels of this index.