What was the quick ratio for Bo Knows Proﬁt Corp. for 2015?
A) 0.21
B) 0.47
C) 0.50
D) 0.53
E) 1.40

Question

What was the quick ratio for Bo Knows Proﬁt Corp. for 2015?
A) 0.21 
B) 0.47 
C) 0.50 
D) 0.53 
E) 1.40

Quizplus · Accepted Answer

The quick ratio is calculated as quick assets (cash, marketable securities, and accounts receivable) divided by current liabilities. 
For 2015, Bo Knows Proﬁt Corp. has quick assets of $121,000 (cash of $40,000 + marketable securities of $56,000 + accounts receivable of $25,000) and current liabilities of $228,000. 
Quick ratio = $121,000 / $228,000 = 0.53 
Therefore, the correct choice is D.

What Was the Quick Ratio for Bo Knows Proﬁt Corp