Question

Accounts payable $ 40,000 Accounts receivable 65,000 Accrued liabilities 7,000 Cash 30,000 Intangible assets 40,000 Inventory 72,000 Long-term investments 110,000 Long-term liabilities 75,000 Marketable securities 36,000 Notes payable (short-term) 30,000 Property, plant, and equipment 625,000 Prepaid expenses 2,000

Based on the above data, what is the quick ratio, rounded to one decimal point?

Answer 1

Quick ratio: 1.701298

Step-by-step explanation:

quick ratio

(The quick ratio is current assets - inventory)/currnet liabilities

In this case we have the complete list, so we have to calculate each term.

`(cash + account \: receivable + marketable \: securities)/(account \: payable + accrued \: liabilities + short.term \: notes \: payable)`

`(30,000 + 65,000 + 36,000)/(40,000 + 7,000 + 30,000)`

Quick ratio: 1.701298