Question

2. 2 2

Answer 1

In finance, the quick ratio, also known as the acid-test ratio is a type of liquidity ratio which measures the ability of a company to use its near cash or quick assets to extinguish or retire its current liabilities immediately. ... It is the ratio between quickly available or liquid assets and current liabilities.

and the formula to calculate Quik Ratio is as follows

(Current Assests-Inventory) / current Liabilities.

In the problem Quick ratio is $(903000-183000)/$309000=2.33

quick ratio greater than 1.0 means that a company is sufficiently able to meet its short-term obligations