The financial statements of Midwest Tours are given below. Note: The common shares are trading in the stock market for $36 each.
Refer to the financial statements of Midwest Tours.The firm's quick ratio for 2009 is
A)1.71.
B)0.78.
C)0.85.
D)1.56.

Question

The financial statements of Midwest Tours are given below.   Note: The common shares are trading in the stock market for $36 each.
Refer to the financial statements of Midwest Tours.The firm's quick ratio for 2009 is
A)1.71. 
B)0.78. 
C)0.85. 
D)1.56.

Quizplus · Accepted Answer

Quick Ratio = (Current Assets - Inventory) / Current Liabilities
Quick Ratio for 2009 = (17,400 - 3,800) / 20,400 = 0.85.

The Financial Statements of Midwest Tours Are Given Below