Question

Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts payable $30,000Accounts receivable 60,000 Accrued liabilities 4,000 Cash 60,000 Intangible assets 50,000 Inventory 69,000 Long-term investments 80,000 Long-term liabilities 100,000 Marketable securities 50,000 Fixed assets 670,000 Prepaid expenses 1,000

Answer 1

The quick ratio rounded to one decimal point is:

5.0

Step-by-step explanation:

To understand this we need to analyze two different topics. First of all quick ratio, the quick ratio is a number that comes from the division of current assets by total current liabilities. So, in other words, is how much the liquid liabilities represent from the liquid assets. Therefore we obtain a very important number. in our case, if we transform all o these numbers into one digit decimal we will obtain that the number is 5.0 because of the requirement of the one decimal. Because after adding all the current assets and dividing them by the liabilities we obtain 5.0 as total in one digit.