Based on the following data, what is the quick ratio, rounded to one decimal place? $\begin{array}{ll}
\$ 32,000 & \text { Accounts payable } \
64,000 & \text { Accounts receivable } \
7,000 & \text { Accrued liabilities } \
20,000 & \text { Cash } \
40,000 & \text { Intangible assets } \
72,000 & \text { Inventory } \
100,000 & \text { Long-term investments } \
75,000 & \text { Long-term liabilities } \
35,000 & \text { Marketable securities } \
25,000 & \text { Notes payable (short-term) } \
625,000 & \text { Property, plant, and equipment } \
2,000 & \text { Prepaid expenses }
\end{array}$

A) 3.2
B) 2.1
C) 1.9
D) 1.4

Question

Based on the following data, what is the quick ratio, rounded to one decimal place? $\begin{array}{ll}
\$ 32,000 & \text { Accounts payable } \
64,000 & \text { Accounts receivable } \
7,000 & \text { Accrued liabilities } \
20,000 & \text { Cash } \
40,000 & \text { Intangible assets } \
72,000 & \text { Inventory } \
100,000 & \text { Long-term investments } \
75,000 & \text { Long-term liabilities } \
35,000 & \text { Marketable securities } \
25,000 & \text { Notes payable (short-term) } \
625,000 & \text { Property, plant, and equipment } \
2,000 & \text { Prepaid expenses }
\end{array}$

A) 3.2
B) 2.1
C) 1.9
D) 1.4

Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Marketable Securities + Accounts Receivable) / (Accounts Payable + Accrued Liabilities + Notes Payable). This equals (20,000 + 35,000 + 64,000) / (32,000 + 7,000 + 25,000) = 119,000 / 64,000 = 1.9.

Based on the Following Data, What Is the Quick Ratio