If X Company Ltd.’s Current Ratio is 5.5:1, Quick Ratio is 4:1, Inventory is $30,000; what are its current liabilities?

The decrease percentage in acid ratio after deduct inventory equal (5.5-4)/5.5 =27.2%... Thus total current asset will be30000÷27.2% =110000 ( after approximate number)Thus total current liabilities will be110000÷5.5 =20000 .. So current liabilities will be20000.....thank you

Current liability would be $20000

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30000 ×5.5 =165000

165000 -30000=135000

30000×4 =120000

120000 -30000=90000

 

135000 -90000 =

45000   

its current liabilities

Current Liability = $20,000

Not complete data available

Current Liabilities =21428.6

The current liabilities is21,428.57; derived by extracting each equation and doing the arithmetic.

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