$ 30,000 65,000 7,000 25,000 40,000 72,000 100,000 75,000 36,000 20,000 625,000
ID: 2447727 • Letter: #
Question
$ 30,000
65,000
7,000
25,000
40,000
72,000
100,000
75,000
36,000
20,000
625,000
2,000
Based on the above data, what is the quick ratio, rounded to one decimal point?
2.2
3.5
3.0
1.6
Accounts payable$ 30,000
Accounts receivable65,000
Accrued liabilities7,000
Cash25,000
Intangible assets40,000
Inventory72,000
Long-term investments100,000
Long-term liabilities75,000
Marketable securities36,000
Notes payable (short-term)20,000
Property, plant, and equipment625,000
Prepaid expenses2,000
Explanation / Answer
current asset = Accounts receivable +cash+ Inventory+ Marketable security + Prepaid expense
= 65000 + 25000 + 72000 + 36000 + 2000
= 200,000
current Liabilities = Accounts payable + accrued liabilities + note payable
= 30000 + 7000 +20000
= 57000
quick ratio = (current asset -Inventory -prepaid expense) /current liabilities
= (200,000 - 72,000 - 2000 ) / 57000
= 126000 / 57000
= 2.2
correct option is "A"
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