Seekers Limited reported the following results for the year just ended: CASH $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$ 30,000
A CCOUNTS RECEIVABLE $\quad$90,000
INVENTORY$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$150,000 The company's quick ratio was 0.90 for the year.How much are the company's current liabilities?
A)$120,000
B)$133,333
C)$266,667
D)$108,000

Question

Seekers Limited reported the following results for the year just ended: CASH $\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$$ 30,000
A CCOUNTS RECEIVABLE $\quad$90,000 
INVENTORY$\quad$$\quad$$\quad$$\quad$$\quad$$\quad$150,000 The company's quick ratio was 0.90 for the year.How much are the company's current liabilities?
A)$120,000
B)$133,333
C)$266,667
D)$108,000

Quizplus · Accepted Answer

The quick ratio is calculated as (Cash + Accounts Receivable) / Current Liabilities. Given the quick ratio is 0.90, and the sum of Cash and Accounts Receivable is $120,000 ($30,000 + $90,000), we can set up the equation 0.90 = $120,000 / Current Liabilities. Solving for Current Liabilities gives $133,333.

Seekers Limited Reported the Following Results for the Year Just \quad

Seekers Limited Reported the Following Results for the Year Just $\quad$