Questions
Single choice
[table] | Dec 31, 2019 | Dec 31, 2020 Current Assets | | Cash And Cash Equivalents | 768,000 | 860,000 Short Term Investments | - | - Net Receivables | 1,124,000 | 950,000 Inventory | 404,000 | 396,000 Office Supplier | 203,000 | 177,000 Total Current Assets | 2,499,000 | 2,383,000 | | Liabilities | | Current Liabilities | | Accounts Payable | 2,120,000 | 2,090,000 Short/Current Long Term Debt | 137,000 | 52,000 Other Current Liabilities | - | - Total Current Liabilities | 2,257,000 | 2,142,000 | | [/table]The Quick Ratio for 2019 is:
Options
A.a. 0.84:1
B.b. 0.45:1
C.c. 0.67:1
D.d. 1:1
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Step-by-Step Analysis
To determine the Quick Ratio for 2019, we need the formula: Quick Ratio = (Current Assets − Inventory − Office Supplier) ÷ Current Liabilities.
First, identify the numbers for 2019:
- Current Assets = 2,499,000
- Inventory = 404,000
- Office Suppli......Login to view full explanationLog in for full answers
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[table] | Dec 31, 2019 | Dec 31, 2020 Current Assets | | Cash And Cash Equivalents | 768,000 | 860,000 Short Term Investments | - | - Net Receivables | 1,124,000 | 950,000 Inventory | 404,000 | 396,000 Office Supplier | 203,000 | 177,000 Total Current Assets | 2,499,000 | 2,383,000 | | Liabilities | | Current Liabilities | | Accounts Payable | 2,120,000 | 2,090,000 Short/Current Long Term Debt | 137,000 | 52,000 Other Current Liabilities | - | - Total Current Liabilities | 2,257,000 | 2,142,000 | | [/table]The Quick Ratio for 2019 is:
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