A company has current liabilities of $2,000,000 and net working capital of $300,000. If the company has a quick ratio of 0.8, the company has inventory of

The quick ratio is calculated as (Current Assets - Inventory) / Current Liabilities.

Given that the quick ratio is 0.8 and the current liabilities are $2,000,000, we can set up the following equation:

0.8 = (Current Assets - Inventory) / $2,000,000

Solving for Current Assets, we get:

Current Assets = 0.8 * $2,000,000 + Inventory Current Assets =$1,600,000 + Inventory

We also know that Net Working Capital is calculated as Current Assets - Current Liabilities.

Given that the net working capital is $300,000 and the current liabilities are$2,000,000, we can set up the following equation:

$300,000 = Current Assets -$2,000,000

Solving for Current Assets, we get:

Current Assets = $300,000 +$2,000,000 Current Assets = $2,300,000

Now, we can set the two equations for Current Assets equal to each other and solve for Inventory:

$1,600,000 + Inventory =$2,300,000 Inventory = $2,300,000 -$1,600,000 Inventory = $700,000

So, the company has an inventory of $700,000.