Gaspares Agricultural Cooperative has current liabilities of $162,500, net working capital of $28,560, inventory of $175,800, and sales of $1,941,840.What is the quick ratio?
A).07
B).16
C).09
D)1.08
E)1.18

Question

Quizplus · Accepted Answer

The quick ratio is calculated as (Current Assets - Inventory) / Current Liabilities. Current Assets = Current Liabilities + Net Working Capital = $162,500 + $28,560 = $191,060. Quick Assets = Current Assets - Inventory = $191,060 - $175,800 = $15,260. Quick Ratio = $15,260 / $162,500 = 0.09.

Gaspares Agricultural Cooperative Has Current Liabilities of $162,500, Net Working