Practice Management - Finances Question

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    Haytham Abdelrahman Abdelall

    Hi Azin,

    Current Ratio is different than Quick Ratio. Current ration range from 1.5 - 1.1

    Revenue billed but not earned should contribute to solvency (current ratio), however, since the equation is provided we'll assume it contributes to liquidity (quick ratio).

    With simple math, revenue billed but not earned = 255,544

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    Kirill Ryadchenko (Edited )

    Haytham Abdelrahman Abdelall

    Could you please provide the details of "Simple Math", I cant arrive to the same revenue billed not earned as you've provided.

    (457,900+125,678+x)/760,111=1.11

    x=260,145.21

    Where am I wrong?

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    Haytham Abdelrahman Abdelall

    Hi Kirill,

    Yes you;re right. If the objective if healthy liquidity the answer will be any value above 1

    However, I entered 255,544, which is slightly lower than 1.1 because I encountered the same question in WEARE, so not necessary the options can be 1.11.

    Azin,

    Could you please provide the complete question to have a full grasp of the question / answer ?

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