Final answer:
The quick ratio measures a company's short-term liquidity without selling inventory. The industry average is 0.92, and the calculated quick ratio should be compared to this number to assess a company's financial stability relative to its industry. Without specific financial figures, we cannot compute the exact quick ratio for the student's assignment.
Step-by-step explanation:
The quick ratio, also known as the acid-test ratio, is a measure of a company's short-term liquidity, specifically its ability to meet its short-term obligations without selling inventory. It is calculated by taking the sum of cash, marketable securities, and accounts receivable, then dividing by the current liabilities. The formula is:
Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
To compare it to the industry average of 0.92, we would take the calculated quick ratio of the student's hypothetical company and see if it is higher or lower than 0.92. If the ratio is above 0.92, the company is considered to have better short-term financial stability compared to the industry; if below, it indicates less stability.
As the student's question lacks the specific financial figures needed to calculate the quick ratio, we cannot compute the exact value. However, assuming they provided the necessary information, the calculation would be straightforward: simply insert the relevant values into the formula and divide. The computed result should then be rounded to two decimal places to match the industry average format.