Question

KLM Corporation's quick assets are $6,158,000, its current assets are $13,650,000 and its current liabilities are $8,170,000. Its acid-test ratio equals:

Answer 1

0.75

Step-by-step explanation:

KLM corporation quick assets is $6,158,000

Current assets are $13,650,000

Current liabilities are $8,170,000

Therefore the acid test ratio can be calculated as follows

= quick assets/current liabilities

= $6,158,000/$8,170,000

= 0.75

Hence the acid test ratio is 0.75