Answer and Explanation:
The computation is shown below:
a. Current ratio
= Current assets ÷ Current liabilities
= ($258,000 + $114,000 + $187,000 + $204,000) ÷ ($249,000)
= 31 : 1 times
b. And, the quick ratio is
= Quick assets ÷ Current liabilities
= ($258,000 + $114,000 + $187,000) ÷ ($249,000)
= 22 : 1 times
We simply applied the above formulas and the same is to be considered