The following summarised statement of financial position is available for L Co.
$'000
Non-current assets
31,250
Current assets
Inventory
35,000
Receivables
40,000
Cash
1,250
107,500
EQUITY AND LIABILITIES
Capital and reserves
47,500
Current liabilities (payables only)
60,000
What is the value of the acid test ratio?
The correct answer is: 0.6875
Acid test ratio
0.6875
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