Question

Based on the following data, what is the amount of quick assets?

Accounts payable: $32,000
Accounts receivable: 56,000
Accrued liabilities: 7,000
Cash: 20,000
Intangible assets: 40,000
Inventory: 72,000
Long-term investments: 100,000
Long-term liabilities: 75,000
Marketable securities: 40,000
Notes payable (short-term): 20,000
Property, plant, and equipment: 625,000
Supplies: 2,000

a. $116,000
b. $188,000
c. $228,000
d. $114,000

Answer 1

The amount of quick assets is $116,000. Therefore, the correct answer is $116,000 (a).

Step-by-step explanation:

In order to determine the amount of quick assets, we need to identify the assets that can be easily converted into cash. Quick assets include cash, marketable securities, and accounts receivable. From the given data, the quick assets are:

• Cash: $20,000
• Marketable securities: $40,000
• Accounts receivable: $56,000

Adding these amounts together, the total amount of quick assets is $116,000. Therefore, the correct answer is $116,000 (a).

Interest rates refer to the percentage of the principal amount charged by a lender to a borrower for the use of assets or money, typically expressed as an annual percentage. They play a crucial role in various financial aspects, such as loans, mortgages, savings accounts, and investments.

These rates can be influenced by several factors, including central bank policies, inflation rates, economic conditions, and market demand for borrowing. When interest rates are low, borrowing money becomes cheaper, encouraging spending and investment but potentially leading to inflation.