Answer:
0.8 : 1
Step-by-step explanation:
Given:
Carl's Toy Factory had the following items listed on its balance sheet.
Cash = 1,590
Accounts Receivable = 5,746
Inventory= 7,879;
Accounts Payable = 9,563
Equipment = 35,743;
Land = 50,000
Buildings= 135,487
Mortgage = 125,276
Question asked:
What was Carl's quick ratio?
Solution:
As we know:
[tex]Quick\ ratio=\frac{Cash + Cash Equivalents + Marketable \ Securities + Accounts \ Receivable }{Current\ liabilities}[/tex]
[tex]=\frac{1590+00+00+5746}{9563} \\=\frac{7336}{9563}=0.8 : 1[/tex]
Therefore, based on this information, Carl's quick ratio is 0.8 : 1
Note : Account payable is current liabilities and hence divided in above formula.
Answer: 0.8 : 1
Step-by-step explanation: Carl's Toy Factory had the following items listed on its balance sheet.
Cash = 1,590
Accounts Receivable = 5,746
Inventory= 7,879;
Accounts Payable = 9,563
Equipment = 35,743;
Land = 50,000
Buildings= 135,487
Mortgage = 125,276
Question asked:
What was Carl's quick ratio?
Solution:
As we know:
Therefore, based on this information, Carl's quick ratio is 0.8 : 1
Note : Account payable is current liabilities and hence divided in above formula.
