The company's quick ratio is closest to A. 1.35 B. 1.15 C. 2.00 D. 1.73

Eagle Company has $9,000 in cash, $11,000 in marketable securities, $26,000 in current receivables, $34,000 in inventories, and $40,000 in current liabilities. The company's quick ratio is closest to

A. 1.35 B. 1.15 C. 2.00 D. 1.73

Solutions

Expert Solution

Calculation of Company's Quick ratio

Given information in the problem

Cash = $9,000

Marketable securities = $11,000

Current receivables = $26,000

Current liabilities = $40,000

Company's Quick ratio = Cash + Marketable Securities + Current receivables / Current Liabilities

=$9,000 + $11,000 + $26,000 / $40,000

=$46,000 / $40,000

=1.15

B.1.15 is the correct option

balaji rao answered 2 years ago

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