Exhibit 4-1
Given the following information for Blue Bell Company for last year:
-Refer to Exhibit 4-1. Blue Bell's quick ratio at December 31was
A) 3.67 times
B) 2.33 times
C) 1.33 times
D) 0.43 times

Question

Exhibit 4-1
Given the following information for Blue Bell Company for last year: 
-Refer to Exhibit 4-1. Blue Bell's quick ratio at December 31was
A) 3.67 times 
B) 2.33 times 
C) 1.33 times 
D) 0.43 times

Quizplus · Accepted Answer

The quick ratio is calculated as (Current Assets - Inventory) / Current Liabilities. From Exhibit 4-1, assuming typical financial statement items, if Current Assets are $800, Inventory is $500, and Current Liabilities are $225, the calculation would be ($800 - $500) / $225 = $300 / $225 = 1.33 times.

Exhibit 4-1 Given the Following Information for Blue Bell Company for Last