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inna [77]
3 years ago
12

Monika's gift barn has cash of $316, accounts receivable of $687, accounts payable of $709, and inventory of $2,108. what is the

value of the quick ratio? .23 .45 .71 1.41 4.38
Business
1 answer:
Natasha2012 [34]3 years ago
3 0
<span>1.41 The quick ratio is the sum of assets that can be quickly liquidated divided by the liabilities. In this case, the assets are the cash of $316 and the accounts payable of $709. The inventory doesn't count since it can't be quickly converted to liquid assets. The liabilities are the accounts payable of $709. So let's do the math. (316 + 687)/709 = 1003/709 = 1.41 So the result is 1.41</span>
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