As of December 31, the Stanford company has the following information. Use this information to answer questions 1 to 3.
Cash $5,000
Accounts Receivable 15,000
Inventory 40,000
Prepaid Insurance 3000
Long-term Assets 100,000
Accounts Payable 15,000
Notes Payable in 5 Months 12,500
Salary Payable 25,000
Notes Payable in 5 Years
35,000
Owner’s Equity 98,000
1. What is the company's Quick Ratio?
Question 1 options:
1.70
0.70
0.38
1.25
Question 2 (10 points)
As of December 31, the Stanford company has the following information. Use this information to answer questions 1 to 3.
Cash $5,000
Accounts Receivable 15,000
Inventory 40,000
Prepaid Insurance 3000
Fixed Assets 100,000
Accounts Payable 15,000
Notes Payable in 5 Months 12,500
Salary Payable 25,000
Notes Payable in 5 years
35,000
Owner’s Equity 98,000
2. What is the company's Working Capital?
Question 2 options:
12,500
10,500
15,000
15,500
Question 3 (10 points)
As of December 31, the Stanford company has the following information. Use this information to answer questions 1 to 3.
Cash $5,000
Accounts Receivable 15,000
Inventory 40,000
Prepaid Insurance 3000
Fixed Assets 100,000
Accounts Payable 15,000
Notes Payable in 5 Months 12,500
Salary Payable 25,000
Notes Payable in 5 years
35,000
Owner’s Equity 98,000
2. What is the company's Current Ratio?
Question 3 options:
2.5
1.75
2.1
1.2