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A company has $25,000 in cash and cash equivalents, $85,000 in short – term investments, $126,000 in net current receivables, $62,000 in inventory, $16,000 of prepaid insurance and $7,000 of supplies. The total current liabilities of the firm are $307,000. The quick ratio of the company is: (Round your final answer to two decimal places.) O A. 0.77. O B. 1.05. O c. 0.36. O D. 0.97.

A company has $25,000 in cash and cash equivalents, $85,000 in short – term investments, $126,000 in net current receivables, $62,000 in inventory, $16,000 of prepaid insurance and $7,000 of supplies. The total current liabilities of the firm are $307,000. The quick ratio of the company is: (Round your final answer to two decimal places.) O A. 0.77. O B. 1.05. O c. 0.36. O D. 0.97.

Intermediate Financial Management (MindTap Course List)
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter7: Analysis Of Financial Statements
Section: Chapter Questions
Problem 7P: Ace Industries has current assets equal to 3 million. The companys current ratio is 1.5, and its...
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A company has $25,000 in cash and cash equivalents, $85,000 in short – term investments, $126,000 in net current receivables, $62,000 in inventory, $16,000 of prepaid insurance and $7,000 of supplies. The total current liabilities of the firm are $307,000. The quick ratio of the company is: (Round your final answer to two decimal places.) O A. 0.77. O B. 1.05. O c. 0.36. O D. 0.97.
Transcribed Image Text:A company has $25,000 in cash and cash equivalents, $85,000 in short – term investments, $126,000 in net current receivables, $62,000 in inventory, $16,000 of prepaid insurance and $7,000 of supplies. The total current liabilities of the firm are $307,000. The quick ratio of the company is: (Round your final answer to two decimal places.) O A. 0.77. O B. 1.05. O c. 0.36. O D. 0.97.
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