The following information concerning the current assets and current liabilities of
Mason Company at December 31, 2010, is presented below.
Based on this information, what would the quick ratio be if Mason sold all of its inventory for $6,000 cash?
a. The quick ratio would decrease from 1.09 to 0.19.
b. The quick ratio would decrease from 1.30 to 0.85.
c. The quick ratio would increase from 1.30 to 1.54.
d. The quick ratio would increase from 1.09 to 1.54.

Question

The following information concerning the current assets and current liabilities of
Mason Company at December 31, 2010, is presented below.
  Based on this information, what would the quick ratio be if Mason sold all of its inventory for $6,000 cash? 
a. The quick ratio would decrease from 1.09 to 0.19.
b. The quick ratio would decrease from 1.30 to 0.85.
c. The quick ratio would increase from 1.30 to 1.54.
d. The quick ratio would increase from 1.09 to 1.54.

Quizplus · Accepted Answer

The Answer of The following information concerning the current assets and current liabilities of
Mason Company at December 31, 2010, is presented below.
  Based on this information, what would the quick ratio be if Mason sold all of its inventory for $6,000 cash? 
a. The quick ratio would decrease from 1.09 to 0.19.
b. The quick ratio would decrease from 1.30 to 0.85.
c. The quick ratio would increase from 1.30 to 1.54.
d. The quick ratio would increase from 1.09 to 1.54.

The Following Information Concerning the Current Assets and Current Liabilities