Question

The company 's quick ratio is closest to

Eagle company has $9,000 in cash ,$11,000 in marketable securities ,$26,000 in current receivables,$34,000 in inventories and $40,000 in currrent liabilities.The company's quick ratio is closest to (a).1.35 (b)1.15 (c)2.00 (d)1.73

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Answer #1

Calculation of Company's Quick ratio


Quick ratio = Cash +Marketables securities + Current receivables  / Current liabilities


=$9,000 + $11,000 + $26,000 / $40,000

=1.15

Option (b)1.15 is the correct choice

answered by: pr balajir rao
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