In: Accounting
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
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
B.1.15 is the correct option