Question

Jones corp. reported current assets of $187,000 and current liabilities of $132,000 on its most recent balance sheet. the current assets consisted of $63,200 cash; $44,800 accounts receivable; and $79,000 of inventory. the acid-test (quick) ratio is:

Answer 1

Hello!

acid-test (quick) ratio=(Cash+short term investments+accounts receivable)÷current liabilities

acid-test (quick) ratio is
(63,200+44,800)÷132,000=0.8182

0.8182×100=81.82%

Good luck!