Solve multi-variable formulas for a specific variable in order to solve some word problems.
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In accounting, the acid-test ratio, or quick ratio, is one way to measure a company's liquidity, or how well equipped it is to pay off debts in cash.
The quick ratio, Q, is calculated using the formula Q, equals, start fraction, C, A, minus, I, minus, P, divided by, C, L, end fraction, where C, A is the value of the company's current assets, I is inventory, P is prepaid expenses, and C, L is current liabilities.
Rearrange the formula to solve for current assets left parenthesis, C, A, right parenthesis.
C, A, equals
What is the value of a company's current assets if the company has dollar sign, 5500 in inventory, dollar sign, 1500 in prepaid expenses, dollar sign, 8000 in current liabilities and a quick ratio of 0, point, 7?
Round your answer, if necessary, to the nearest dollar.
C, A, equals
  • Your answer should be
  • an integer, like 6
  • a simplified proper fraction, like 3, slash, 5
  • a simplified improper fraction, like 7, slash, 4
  • a mixed number, like 1, space, 3, slash, 4
  • an exact decimal, like 0, point, 75
  • a multiple of pi, like 12, space, p, i or 2, slash, 3, space, p, i