From the following list of accounts, calculate the quick ratio.Cash.......................................Accounts receivable................Inventory................................Prepaid insurance ...................$ 2,0007,00017,0001,000Accounts payable ............................Salary payable .................................Notes payable (due in two years) ....Short-term investments....................$ 5,0009,0008,0005,000a. 1.5b. 1.0c. 1.8d. 2.3

Question

From the following list of accounts, calculate the quick ratio.
Cash.......................................
Accounts receivable................
Inventory................................
Prepaid insurance ...................
$ 2,000
7,000
17,000
1,000
Accounts payable ............................
Salary payable .................................
Notes payable (due in two years) ....
Short-term investments....................
$ 5,000
9,000
8,000
5,000
a. 1.5
b. 1.0
c. 1.8
d. 2.3

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Accounting Ratio Analysis

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