Macmillan Corporation has provided the following financial data: Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's acid-test (quick) ratio at the end of Year 2 is closest to:
A)1.96
B)1.41
C)1.20
D)1.48

Question

Macmillan Corporation has provided the following financial data:   Dividends on common stock during Year 2 totaled $7,200. The market price of common stock at the end of Year 2 was $3.69 per share. The company's acid-test (quick) ratio at the end of Year 2 is closest to:
A)1.96 
B)1.41 
C)1.20 
D)1.48

Quizplus · Accepted Answer

To calculate the acid-test (quick) ratio, we need to divide the total current assets less inventory by the total current liabilities. The information for Year 2 is not provided.

Therefore, we cannot determine the acid-test (quick) ratio. The information about dividends and stock price is not relevant to find the ratio.

Macmillan Corporation Has Provided the Following Financial Data