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Based on the following data, what is the quick ratio, rounded to one decimal point? Accounts...

Based on the following data, what is the quick ratio, rounded to one decimal point?

Accounts payable $30,000
Accounts receivable 55,000
Accrued liabilities 5,000
Cash 30,000
Intangible assets 50,000
Inventory 69,000
Long-term investments 80,000
Long-term liabilities 100,000
Marketable securities 30,000
Fixed assets 670,000
Prepaid expenses 1,000

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Expert Solution

Quick ratio = Quick Assets /Current Liabilities
= $       1,15,000 / $       35,000
= 3.3
Working:
a. Calculation of quick assets: b. Calculation of current liabilities:
Accounts Receivable           55,000 Accouns Payable      30,000
Cash           30,000 Accrued Liabilities         5,000
Marketable securities           30,000
Total Quick Assets        1,15,000 Total Current Liabilities      35,000
Note:Quick assets does not considers Inventory and Prepaid Expenses.

jeff jeffy answered 2 years ago
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