Egan Company has the following assets on January 1, 2010 and January 1, 2009. If Egan's quick ratio is 3.00 for 2010, what is the amount of its current liabilities?
A) $325,000
B) $256,000
C) $285,000
D) There is not enough information to answer this question.

Question

Egan Company has the following assets on January 1, 2010 and January 1, 2009.  If Egan's quick ratio is 3.00 for 2010, what is the amount of its current liabilities?
A) $325,000 
B) $256,000 
C) $285,000 
D) There is not enough information to answer this question.

Quizplus · Accepted Answer

Quick ratio = ($430 + $302 + $36) / x = 3.0
X = $256,000

Egan Company Has the Following Assets on January 1, 2010