Linear programming is a mathematical technique for planning resource allocation that optimizes a given objective function subject to certain constraints. Thus, it maximizes a revenue or profit function or minimizes a cost function, subject to constraints. For example, constraints maybe limited (scarce) resources or minimum/maximum levels of production, performance, etc. In business, linear programming is used for planning resource allocations. Managers are often faced with problems of selecting the most profitable or least costly way to use available resources.

Total assets equal total liabilities and equity. Hence, if total assets equal US $100. Total liabilities and equity must equal US $100, and current liabilities must equal US $30 $100 $40 - $30). Because the quick ratio equals the quick assets cash + accounts receivable) divided by current liabilities, the quip-k assets must equal US $36 $30 x 1.2 quick ratio), and the accounts receivable balance is US $26 $36 I- $10 cash). An entity has a current ratio of 14, a quick, or acid test, ratio of 12, and the following partial summary balance sheet: