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marshall27 [118]
3 years ago
12

Lee Company has a current ratio of 2.65. The acid test ratio is 2.01. The current liabilities of Lee are $45,000. Assuming there

are no prepaid expenses, the dollar amount of merchandise inventory is A. $28,800. B. $90,540. C. $28,008.D. $90,450
Mathematics
1 answer:
Salsk061 [2.6K]3 years ago
8 0
The dollar amount of merchandise inventory is A. $28,800
Let N = be the missing number
1.) 
N/$45,000 = 2.65/1 (cross multiply to get the current assets)
                   N = $119,250
2.) N/$45,000 = 2.01 (cross multiply to get current the quick assets)
                   N = $90,450
3.) Since there are no prepaid expenses, subtract current quick assets from the current assets to get the merchandise inventory
$119,250 - $90,450 = $28,800
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