Madison Company has current assets, current liabilities, and long-term liabilities of $8,000, $4,000, and $6,000, respectively. Within these amounts, inventory was $2,000, receivables were $2,000, cash was $4,000, and payables were $1,000. Calculate Madison's quick ratio. What information does this provide?

Question

Quizplus · Accepted Answer

The Answer of Madison Company has current assets, current liabilities, and long-term liabilities of $8,000, $4,000, and $6,000, respectively. Within these amounts, inventory was $2,000, receivables were $2,000, cash was $4,000, and payables were $1,000. Calculate Madison's quick ratio. What information does this provide?

Madison Company Has Current Assets, Current Liabilities, and Long-Term Liabilities