Carl's Toy Factory had the following items listed on its balance sheet. Cash, 1,590; Accounts Receivable, 5,746; Accounts Payable, 9,563; Inventory, 7,879; Equipment, 35,743; Land, 50,000; Buildings, 135,487; Mortgage, 125,276. Based on this information what was Carl's quick ratio?
A) 1.59
B) 2.14
C) 0.77
D) 1.37

Question

Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Accounts Receivable) / Current Liabilities. Here, it's (1,590 + 5,746) / 9,563 = 7,336 / 9,563 = 0.77.

Carl's Toy Factory Had the Following Items Listed on Its