Emerald Company has $20,000 in cash, $10,000 in marketable securities, $40,000 in accounts receivables, $45,000 in inventories, and $50,000 in current liabilities.The company's quick ratio is closest to:

Question

Quizplus · Accepted Answer

Quick Ratio = (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities 
= ($20,000 + $10,000 + $40,000) / $50,000
= 1.40

Emerald Company Has $20,000 in Cash, $10,000 in Marketable Securities