Look at the picture, which one is the correct answer?
1 answer:
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Answer: 0.80:1
Explanation:
Given that,
Cash balance = $80,000
Short-term investments = $20,000
Net receivables = $60,000
Inventory = $450,000
Current liabilities total = $200,000
Quick assets = Cash balance + Short-term investments + Net receivables
= $80,000 + $20,000 + $60,000
= $160,000
Red Line’s quick ratio =
=
= 0.80 : 1