Based on the following data,what is the quick ratio,rounded to one decimal point?

A)3.4
B)3.0
C)2.2
D)1.8

Question

Based on the following data,what is the quick ratio,rounded to one decimal point?

A)3.4 
B)3.0 
C)2.2 
D)1.8

Quizplus · Accepted Answer

The quick ratio is calculated by subtracting inventories from current assets and dividing by current liabilities. In this case, the quick assets are $52,000 ($10,000 + $25,000 + $17,000) and the current liabilities are $15,200, so the quick ratio is:

Quick Ratio = (Quick Assets - Inventories) / Current Liabilities
= ($52,000 - $6,800) / $15,200
= $45,200 / $15,200
= 2.98 or 3.0 rounded to one decimal point.

Therefore, the best choice is A) 3.4, as it is the closest rounded value to the calculated quick ratio of 3.0.

Based on the Following Data,what Is the Quick Ratio,rounded to One