you are evaluating the balance sheet for Patty casecorporation from the balance sheet you find...

you are evaluating the balance sheet for Patty case corporation from the balance sheet you find the following balances cash and markable securities $370,000 account receivable $1,260,000 inventory equals 2,16,000 wages and taxes $530,000 and account payable equals 830, 000 and note payable equals 660,000 calculate Patty cakes current ratio calculate Patty's current quick ratio calculate Patty cakes cash ratio

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Expert Solution

Cash and marketable securities	370000
Account receivable	1260000
Inventory	216000
Current assets	1846000

Wages and taxes	530000
Accounts payable	830000
Note payable	660000
Current liabilities	2020000

Current ratio = Current assets / Current liabilities = 1846000 / 2020000 =	0.91

Quick ratio = ( Current assets - Inventory ) / Current liabilities = ( 1846000 - 216000 ) / 2020000 =	0.81

Cash ratio = Cash and marketable securities / Current liabilities = 370000 / 2020000 =	0.18

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