Financial data for ABC Corporation as of December 31, 2018 are given below: Cash $2,500,000 Accounts...
Financial data for ABC Corporation as of December 31, 2018 are given below:
Cash $2,500,000
Accounts receivable $3,200,000
Inventory $1,500,000
Plant and Equipment $5,000,000
Accounts Payable $4,000,000
Sales (All Credit) $9,500,000
Based on the information above, the Quick or Acid-test ratio for ABC in 2018 is closest to?
Homework Answers
Quick ratio=Quick assets/Current liabilities
=(Cash+AR)/AP
=(2,500,000+3,200,000)/4,000,000
which is equal to
=1.425
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Financial data for ABC Corporation as of December 31, 2018 are
given below:
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