Current Ratio and Quick (Acid-Test) Ratio Upton Company has
current assets equal to $2,885,000. Of these, $1,100,000 is cash,
$1,105,000 is accounts receivable, and the remainder is
inventories. Current liabilities total $2,850,000. Required: Note:
Round answers to two decimal places.
1. Compute the current ratio.
2. Compute the quick (acid-test) ratio.
Feedback 1. Current Ratio = Current Assets/Current Liabilities
2. Quick Ratio = (Cash + Marketable Securities + Accounts
Receivable)/Current Liabilities