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ivanzaharov [21]
3 years ago
15

Presented below is information available for Sheridan Company.

Business
1 answer:
choli [55]3 years ago
7 0

Answer:

The acid-test ratio for Sheridan is 2.82.

Explanation:

The acid test ratio is also known as the Quick ratio. It measures company`s liquidity and is calculated as follows :

Acid Ratio = (Current Assets - Inventories) ÷ Current Liabilities

                 = ($229,000 - $88,000) ÷ $50,000

                 = 2.82

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