https://file.aiquickdraw.com/mathbot/file/1729087829098nxr6xfku.jpg

The problem provides the following information:

- Current Ratio (CR) = 3
- Quick Ratio (QR) = 1.8
- Total Current Assets (TCA) = $3.6 million

We need to find the firm's inventory balance.

### Key Equations:
1. **Current Ratio (CR)**:  
   \[
   \text{CR} = \frac{\text{Total Current Assets (TCA)}}{\text{Total Current Liabilities (TCL)}}
   \]
   Given:  
   \[
   3 = \frac{3.6 \text{ million}}{\text{TCL}}
   \]
   Solve for TCL:
   \[
   \text{TCL} = \frac{3.6}{3} = 1.2 \text{ million}
   \]

2. **Quick Ratio (QR)**:  
   \[
   \text{QR} = \frac{\text{Total Current Assets (TCA)} - \text{Inventory}}{\text{TCL}}
   \]
   Given:
   \[
   1.8 = \frac{3.6 \text{ million} - \text{Inventory}}{1.2 \text{ million}}
   \]
   Solve for Inventory:
   \[
   1.8 \times 1.2 = 3.6 - \text{Inventory}
   \]
   \[
   2.16 = 3.6 - \text{Inventory}
   \]
   \[
   \text{Inventory} = 3.6 - 2.16 = 1.44 \text{ million}
   \]

### Answer:
The firm's inventory balance is **$1.44 million**.

Would you like a further breakdown or explanation?

Here are some additional related questions:
1. How is the quick ratio different from the current ratio?
2. What are the components of current assets in a balance sheet?
3. Can a firm's inventory be higher than its current liabilities?
4. How would a change in inventory affect the quick ratio?
5. What other liquidity ratios are important in financial analysis?

**Tip:** The quick ratio excludes inventory from current assets to assess liquidity because inventory is often less liquid than other current assets.

A firm has a current ratio equal to 3, a quick ratio equal to 1.8, and total current assets of $3.6 million. The firm's inventory balance is:

Learn how to calculate a firm's inventory balance using the current ratio (CR), quick ratio (QR), and total current assets. This problem involves liquidity ratios, suitable for finance students and professionals.

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