Nickolls Corporation has provided the following financial data: The company's acid-test (quick) ratio is closest to:
A) 2.58
B) 2.50
C) 3.21
D) 3.62

Question

Nickolls Corporation has provided the following financial data:  The company's acid-test (quick) ratio is closest to:
A) 2.58 
B) 2.50 
C) 3.21 
D) 3.62

Quizplus · Accepted Answer

The formula for the acid-test (quick) ratio is (Cash + Short-term Investments + Accounts Receivable) / Current Liabilities.

Plugging in the given numbers, we get: 
(30,000 + 45,000 + 75,000) / 60,000 = 2.50

Therefore, the closest answer is B) 2.50.

Nickolls Corporation Has Provided the Following Financial Data: the Company's