SDJ, Inc., has net working capital of $3,810, current liabilities of $5,600, and inventory of $4,840. What is the current ratio?

SDJ, Inc., has net working capital of $3,810, current liabilities of $5,600, and inventory of $4,840.

  

What is the current ratio? (Round your answer to 2 decimal places. (e.g., 32.16))

 

Current ratio

times

  

What is the quick ratio? (Round your answer to 2 decimal places. (e.g., 32.16))

  

Quick ratio

times

Explanation:

The formula for NWC:

  

NWC = CA – CL

CA = CL + NWC = $3,810 + 5,600 = $9,410

  

So, the current ratio is:

Current ratio = CA / CL = $9,410 / $5,600 = 1.68 times

  

And the quick ratio is:

Quick ratio = (CA − Inventory) / CL = ($9,410 − 4,840) / $5,600 = 0.82 times