From the following data for David ProElecticals, calculate the quick ratio. $$\begin{array} { l r }
\text { Cash } & \$ 68,500 \
\text { Accounts receivable } & 130,000 \
\text { Inventories } & 213,000 \
\text { Prepaid expenses } & 25,000 \
\text { Total current assets } & \$ 436,500 \
\text { Less current liabilities } & \underline { 275,000 } \
\text { Working capital } & \$ 161,500
\end{array}$$
A) 1.6
B) 0.7
C) 0.3
D) 1.5

Question

From the following data for David ProElecticals, calculate the quick ratio. $$\begin{array} { l r } 
\text { Cash } & \$ 68,500 \
\text { Accounts receivable } & 130,000 \
\text { Inventories } & 213,000 \
\text { Prepaid expenses } & 25,000 \
\text { Total current assets } & \$ 436,500 \
\text { Less current liabilities } & \underline { 275,000 } \
\text { Working capital } & \$ 161,500
\end{array}$$
A) 1.6
B) 0.7
C) 0.3
D) 1.5

Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Accounts Receivable) / Current Liabilities. Using the given data: (68,500 + 130,000) / 275,000 = 198,500 / 275,000 = 0.72, which rounds to 0.7.

From the Following Data for David ProElecticals, Calculate the Quick