Use the table for the question(s)below.

-Refer to the balance sheet above.Luther's quick ratio for 2005 is closest to:
A)0.77
B)1.31
C)1.09
D)0.92

Name: Use the table for the question(s)below. -Refer to the balance sheet above.Luther's quick ratio for 2005 is closest to: A)0.77 B)1.31 C)1.09 D)0.92
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Question

Use the table for the question(s)below.
  
-Refer to the balance sheet above.Luther's quick ratio for 2005 is closest to:
A)0.77 
B)1.31 
C)1.09 
D)0.92

Quizplus · Accepted Answer

Quick ratio = (Current assets - Inventory) / Current liabilities
For 2005, the quick ratio = (1,916 - 495) / 2,243 = 0.77 (rounded to two decimal places). The closest answer choice is A).

Use the Table for the Question(s)below