Crafter Company has the following assets and liabilities:Assets Cash$24,971Accounts receivable12,397Inventory26,682Equipment79,197 Liabilities Current portion of long-term debt8,928Accounts payable2,995Long-term debt58,532Determine the quick ratio (rounded to one decimal point).a.1.1b.5.4c.2.0d.3.1

Name: Crafter Company has the following assets and liabilities:Assets Cash$2
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Description: Crafter Company has the following assets and liabilities:Assets Cash$24,971Accounts receivable12,397Inventory26,682Equipment79,197 Liabilities Current portion of long-term debt8,928Accounts payable2,995Long-term debt58,532Determine the quick ratio (

Quick ratio is also known as acid-test ratio. It aims to determine company’s liquidity position.

Answered: Crafter Company has the following…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 6MCQ

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Crafter Company has the following assets and liabilities:

Assets
Cash	$24,971
Accounts receivable	12,397
Inventory	26,682
Equipment	79,197

Liabilities
Current portion of long-term debt	8,928
Accounts payable	2,995
Long-term debt	58,532

Determine the quick ratio (rounded to one decimal point).

a.1.1

b.5.4

c.2.0

d.3.1

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