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Derisport Corporation has and test ratio of 22. It has current liabilities of $54,000 and noncurrent assess of $95.000 The co
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Answer #1

Current assets value in quick ratio (without inventory and prepaid expense) = $64,000 X 2.2 = $140,800

Current assets value in current ratio (with inventory and prepaid expense) = $64,000 X 3.6 = $230,400

Inventory and prepaid expenses = $230,400 - $140,800 = $89,600

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